Members of parliament (MPs) often decide on their own salaries. Voters dislike self-serving politicians, and … politicians are keen to gratify their voters. In line with the political business cycle theories, politicians thus may well delay … increased by one percent. Politicians can increase their salaries at any point of time in the legislative period: understanding …

politicians. Two political frictions (ideological adherence and a super- majority requirement) impair political competition and … lead to equilibria, where politicians receive corruption bribes. Furthermore, the model implies a non …