In this paper we look at the behavior of physical depreciation over the business cycle. We do so within the context of a real business cycle model where the decisions of firms about physical capital utilization, maintenance, improvement and scrapping are endogenous. The model encompasses the...

The paper examines wheter the tax changes observed in eleven countries of the European Union during the 1965-1996 period could be attibuted to intended pre-election period actions of incumbent governments seeking their reelection or to traditional stabilizing fiscal policies.

This paper presents a two-party dynamic model of optimal fiscal policy which integrates stabilizing electroral and partisan motives.

We use Greek data during 1960-1994 to test and estimate a model in which wage inflation, price inflation and unemployment depend on the exchange rate regime, the identity of the political party in power and whether an election is expected to take place.