To accurately quantify the effects of government spending, it is necessary to identify exogenous changes in government spending. In this paper, we estimate a proxy VAR, developed by Stock and Watson (2012) and Mertens and Ravn (2013), using a revised supplementary budget from the government as...

The goal of this paper is twofold: First, to develop an estimable model of legislative politics in the US Congress, second, to provide a greater understanding of the objectives behind the New Deal. In the theoretical model, the distribution of federal funds across regions of the country is the...

... Die vorliegende Arbeit stützt sich deshalb auf eine institutionell bedingte Veränderung derBeteiligung, die Einführung des Frauenstimmrechts, um den Effekt einer kontrolliertenAusweitung des Elektorats auf die Staatsausgaben zu untersuchen. Das institutionelle Labor Schweiz erlaubt dabei...

This paper introduces preliminary evidence from a cross-country database of policy characteristics and potential uses of that database. While most databases have emphasized either the content of policies (e.g., size of government deficits) or countries&' formal institutions (e.g., political...

This paper proposes and empirically tests a new demand-side explanation for distortions in public spending composition. Voters prefer spending with certain and immediate benefits when they have low trust in electoral promises and high discount rates. The paper incorporates these characteristics...

Previous studies used general government data to examine whether national governments' electoral motives and ideology influenced budget composition in OECD countries. General government data includes, however, the state and local level. Using new data for general and central government over the...

Using an estimation method developed by Blanchard and Wolfers (2000) we study whether the size of a country's legislature impacts its fiscal response to common and country-specific shocks. The use of this method allows us to estimate the effects of legislature size while also controlling for...

Pork-barrel spending is the use of federal money for localized projects which typically yield only a narrow geographic benefit. It is a commonly held belief that politicians utilize this spending to improve their chances of re-election. One way an incumbent can increase their chances of...

This paper studies the cyclical properties of two key expenditure categories (current and public investment spending) during the different phases of the business cycle (good times and bad times). Anecdotal evidence suggests that policymakers usually cannot resist the temptation of spending more...

Using a panel of OECD countries, we show that immigration systematically alters the composition of public spending in the destination country. To mitigate the bias from endogenous sorting of immigrants, we use an IV estimation strategy. The instrument is constructed by estimating a bilateral...