I study a small open economy in which elections affect and are affected by capital inflows. Two candidates, one favoring workers and another favoring entrepreneurs, run for office; the winner chooses taxes, which affect investment returns. A pro labor victory results in a quot;sudden stopquot; in...

In multi-party systems, parties often form alliances before elections. What brings competing parties to coalesce into new entities? I present a model of electoral competition in which parties can form pre-electoral alliances and decide how binding these should be. Parties face a dynamic...