Recent contributions to the political economics literature (Trebbi et al. 2007; Aghion et al. 2004) have challenged the view that political institutions are exogenous to the behavior of agents in the political arena. We explicitly address the potential endogeneity of institutions by examining the...

Recent contributions to the political economics literature (Trebbi et al. 2007; Aghion et al. 2004) have challenged the view that political institutions are exogenous to the behaviour of agents in the political arena. We explicitly address the potential endogeneity of institutions by examining the...

Mainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for irrational behaviour is given, since voters lack incentives for rational reasoning concerning their voting...