This paper studies the political economy of a basic income (BI) versus a means tested welfare scheme. We show in a very simple setting that if society votes on the type of system, its generosity as well as the "severity" of means testing (if any), a BI system could only emerge in the political...

This paper studies the political economy of a basic income (BI) versus a means tested welfare scheme. We show in a very simple setting that if society votes on the type of system, its generosity as well as the "severity" of means testing (if any), a BI system could only emerge in the political...

In this paper we study the link between elections, fiscal policy and economic growth/fluctuations. The set-up is a dynamic stochastic general equilibrium model of growth and endogenously chosen fiscal policy, in which two political parties can alternate in power. The party in office chooses...

This paper investigates the implications of how states with initiative systems of legislation can use this more direct form of democracy to improve productive resource alloction by their governments. We construct a simple growth model whereby we can identify this channel through which...

This paper investigates the empirical implications of optimal taxation models in the presence of political institutions. Conventional economic theory suggests that the optimal rate of taxation is sensitive to the underlying assumptions concerning externalities. If there are no externalities, the...

Recent studies have claimed that states with initiative systems of legislation use this more direct form of democracy to improve productive resource allocation. This paper compares the economic performance of states with initiatives to states that do not have initiatives. We first construct a...

This chapter studies situations where media sources deliberately deviate from truthful reporting in order to manipulate electoral outcomes. Media capture occurs when the government actively attempts to influence the media industry. We instead speak of media power when news organizations engage...

This chapter investigates how media coverage filters information and how this affects political accountability and policy. I first present a baseline model of media coverage and its effect on political accountability. The model is used to discuss the welfare consequences of private provision of...

This paper proposes that reforms by vote-seeking governments and the existence of reform-adverse voters are logically compatible. This results from a commitment problem on the part of voters. Due to economic voting voters cannot credibly commit to reelect a non-reforming government during a...

This paper describes subjective wage inequality and the demand for redistribution in Austria using individuals' estimates of occupational wages from the International Social Survey Program. Although these estimates differ widely across individuals, the data clearly show that most individuals...