Rational partisan theory of political business cycles suggests differences in inflation under left-wing and right-wing governments. It also suggests temporary post-electoral booms after election of left-wing governments and temporary recessions after election of right-wing ones. However, the...

In this paper we present three simple theoretical models to explain the influence of the possibility to make non-binding announcements on future investment behaviour in public good settings. Our models build on the idea that voluntary contributions to the supply of a public good might be...

The paper presents a simple theoretical framework to explain the influence of the possibility to make non-binding announcements on investment behaviour in public goods settings. Our model builds on the idea that voluntary contributions to the supply of a public good might be motivated by some...

In this paper we present three simple theoretical models to explain the influence of the possibility to make non-binding announcements on investment behaviour in public goods settings. Our models build on the idea that voluntary contributions to the supply of a public good might be motivated by...

The empirical evidence toward rational partisan theory of business cycles is mixed and thus inconclusive. This is due to the enormous heterogeneity of the existing empirical studies. Only a few of these test explicitly for the central theoretical innovation that post-electoral blips in economic...

This article studies the impact of decentralization on the shadow economy. We argue that decentralization may decrease the size of the shadow economy mainly through two transmission channels: (1) decentralization enhancing public sector efficiency (<italic>efficiency effect</italic>), and (2) decentralization...

We study how natural-resource rents a ffect the risk of internal conflict within countries and how the federal structure of countries influences this relationship. Natural-resource abundance may induce excessive rent-seeking and thus increase the risk of internal conflict. Fiscal and political...

This paper empirically studies the impact of decentralization and inter-jurisdictional competition on foreign aid effectiveness. For this purpose we examine a commonly used empirical growth model, considering different measures of fiscal decentralization. Our panel estimations reveal that...