The purpose of this paper is to answer the three questions in the title. Using a large monthly survey of businesses, we investigate the inflation expectations and uncertainties of firms. We document that, in the aggregate, firm inflation expectations are very similar to the predictions of...

The purpose of this paper is to answer the three questions in the title. Using a large monthly survey of businesses, we investigate the inflation expectations and uncertainties of firms. We document that, in the aggregate, firm inflation expectations are very similar to the predictions of...

Rational partisan theory of political business cycles suggests differences in inflation under left-wing and right-wing governments. It also suggests temporary post-electoral booms after election of left-wing governments and temporary recessions after election of right-wing ones. However, the...

Using microdata that serve as the foundation of the ifo Business Climate Index, Germany's leading business cycle indicator, I examine whether political uncertainty influences how firm owners perceive their present state and future development of business. I use state election months as...

Economic theory advances various arguments in favor of and against privatizing education. In this paper we investigate the extent to which these arguments influence voters opinions. We analyze two popular referenda in which some 400,000 voters in two Swiss cantons expressed their opinions on the...

Campaign expenditures are not effective in increasing candidates vote shares if voters do not respond to the advertisement when they believe that campaign expenditures are financed with tainted money. In this situation, limiting contributions may reduce the number of policy favors that...

We examine whether compulsory voting influences political participation as measured by voter turnout, invalid voting, political interest, confidence in parliament, and party membership. In Austria, some states temporarily introduced compulsory voting in national elections. We investigate border...

Despite controversial debates about the social acceptability of its nationalist program, the rightwing populist AfD has recently entered all state parliaments as well as the federal parliament in Germany. Although professed AfD voters faced a likely risk of social stigmatization, electoral...