In "The Myth of the Rational Voter" Brian Caplan shows that voters entertain systematically biased beliefs on a number of essential issues of economic policy and concludes that this leads democracies to choose bad policies. We introduce the psychological concept of mental models to address...

What determines citizens satisfaction with the constitution in operation ? We make two contributions towards an answer to this important policy question. First, we place stronger emphasis than existing studies on quantitative interpretations of the importance of different factors. We use...

Most theorists of public finance treat budgeting as a technical problem concerned centrally with projecting revenues and expenses. To the contrary, I treat budgeting as a political problem, with technical matters serving to obscure more than illuminate the political economy of budgeting. This...

What determines citizens' satisfaction with the "constitution in operation"? We make two contributions towards an answer to this important policy question. First, we place stronger emphasis than existing studies on quantitative interpretations of the importance of different factors. We use...

The spread of propaganda, misinformation, and biased narratives from autocratic regimes, especially on social media, is a growing concern in many democracies. Can censorship be an effective tool to curb the spread of such slanted narratives? In this paper, we study the European Union's ban on...

In a game-theoretical approach of probabilistic voting, we introduce biased beliefs among voters and retrospective voting. In order to micro-found biased beliefs we introduce the psychological concept of mental models. We put into perspective the claim that biased beliefs lead to bad policy...

Starting from a discussion of Schumpeter's analysis of the relationships of capitalism, socialism and democracy, it is shown that, in a complex society, democracy is only compatible with a decentralized market economy with safe property rights. But in time democracy shows a tendency to weaken...

Starting from a discussion of Schumpeter's analysis of the relationships of capitalism, socialism and democracy, it is shown that, in a complex society, democracy is only compatible with a decentralized market economy with safe property rights. But in time democracy shows a tendency to weaken...

We examine whether democratic societies can escape poverty traps. Unrestricted agenda setting with simple majority rules fail to educate a society, because education-enhancing redistribution will not occur. We show that a combination of suitable constitutional rules overcomes this impossibility...

By the turn of the 20th century, nation-building reformers in Spain tried to stimulate schooling expansion to improve (or at least dignify) Spain’s position in the international arena. However, in this paper we find that democratic imperfections help explaining the modest spread of primary...