Keynes' General Theory (1936) is arguably one of the most important books of the twentieth century. His ideas for stabilizing the aggregate economy have profoundly influenced economic theory as well as popular opinion about what governments can and should do with respect to the business cycle....

This paper presents a rational political budget cycle model for an open economy, in which devaluations are delayed in the pre-election period so as to increase the electoral chances of the party in office. By concentrating on closed economies, previous political cycle models had overlooked the...

Keynes' idea (1936) that governments can stabilize aggregate activity is one of the most important innovations in public policy thinking in the twentieth century. However, the extent to which Keynesian theory has actually influenced policy actions remains an open question. We reconsider the...

This paper explores the effect of party system institutionalization on the reliance of tax systems on the personal income tax. As a first step, the paper re-examines the relationship between party system institutionalization and taxation patterns employing the recently launched Government...

The study investigates how judicial review of policy and judicial independence affect the relative size of government. Judicial oversight of policy is the authority of courts to check the legality of policy measures and annul measures which are incompatible with the constitution or are enacted...

Although macroeconomic forecasts are a relevant source of information for financial markets, the determinants of their accuracy are still unclear. We examine whether macro forecasting houses' access to private political information is a determinant of macroeconomic forecast accuracy. In...

Recent research has shown that the standard labor matching model hasdifficulties in reproducing the co-movement patterns observed in US data. Thisis due to the fact that the standard model lacks sufficient propagation of shocks.This paper shows that refining the informational structure of the...

Recent research has shown that the standard labor matching model has difficulties in reproducing the co-movement patterns observed in US data. This is due to the fact that the standard model lacks sufficient propagation of shocks. This paper shows that refining the informational structure of the...