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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 deciding on increases in salaries until after elections....
Persistent link: https://www.econbiz.de/10011517956
We study the local favoritism of appointed German state ministers. Matching hand-collected data on ministers' place of residence to a sample of more than 8,000 west German municipalities during the period 1994-2013, we find that the home municipality of a state minister experiences higher...
Persistent link: https://www.econbiz.de/10011778673
This volume includes five self-contained chapters in the fields of public debt and fiscal transfer schemes. After an introduction to the topic, chapter 2 shows that the institutional setting of fiscal policy making needs to be considered when assessing the sustainability of fiscal policy. Using...
Persistent link: https://www.econbiz.de/10011698353
Rain affects electoral turnout both through a direct effect on the cost of voting and by changing the opportunity cost. In a panel of Norwegian municipalities I find that rain on Election Day increases turnout. As turnout affects electoral outcomes, rain provides an exogeneous source of...
Persistent link: https://www.econbiz.de/10010383810
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...
Persistent link: https://www.econbiz.de/10011542240
This dissertation consists of six self-contained chapters that are related to the behavior of firms and politicians in a broader sense. After an introduction to the topic, the first part of the dissertation elaborates on how institutional and political framework conditions influence the behavior...
Persistent link: https://www.econbiz.de/10011741962
Politicians are expected to influence policy outcomes in a way to gain electoral advantage. There is, however, a pending question whether efficiency in the provision of public goods and services is affected by strategic behavior. I examine how electoral cycles influence local government...
Persistent link: https://www.econbiz.de/10012663286
In this paper, I structurally estimate a stochastic bargaining model of government formation in a multiparty parliamentary democracy, and I conduct policy experiments to evaluate the effects of changes in the bargaining procedure. I show that the model fits well data on the duration of...
Persistent link: https://www.econbiz.de/10014089522
rents. Those rents can involve higher wages, monetary and non-monetary fringe benefits (e.g. pensions and staffing), and …/or bribes. We propose a direct measure to capture the total of these rents: the difference in reported subjective well … extent of rents in the public bureaucracy. The extent of rents is determined by differences in institutional constraints and …
Persistent link: https://www.econbiz.de/10010267660
extract rents for his family worth between one fourth and one full private sector job per year. The effect of nepotism is long …
Persistent link: https://www.econbiz.de/10011442303