Previous empirical studies analysing the effect of electoral systems on growth lack unanimous answers as they miss-specify mixed systems in the empirical setting, that is, they neglect to consider the proportionality degree of mixed electoral systems. This work supplies the missing answers by...

We show that federalism will lead to higher economic growth. We present a model of endogenous growth where government services, funded by income and capital taxes, are a component of production. In this model a decentralized government will choose tax policy to maximize economic growth, while a...

We formulate a model to explain why the lack of political competition may stifle economic performance and use the United States as a testing ground for the model’s predictions, exploiting the 1965 Voting Rights Act which helped break the near monpoly on political power of the Democrats in...

Using actual voting records of simultaneous elections held for Indian federal and regional assemblies -- where same political parties contest against each other in both type of elections -- we identify swing voters. We find that the representatives supported by swing voters outperform...

We explore the relationship between government size and economic growth in an endogenous growth model with human capital and an unproductive capital which facilitates rent-seeking. With exogenous as well as endogenous time discounting, we find a non-monotonic relationship between the size of...

Politicians, philosophers and economists have been arguing about the role of the government in a country’s economy for centuries. The government is an important economic agent, and it is the only agent whose actions can be controlled to some extent; it would be impossible to ‘control’ all...