This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Two politicoeconomic equilibria arise from our model, one with little protection of insiders on capital and labor markets, and another one with...

Der Geltungsbereich von Tarifverträgen ist in den skandinavischen, den kontinental-europäischen und den südeuropäischen Ländern hoch. Mitte der neunziger jahre erreichte er zum Beispiel in Deutschland 92%. Zwischen den Ländergruppen gibt es aber einen gravierenden Unterschied. In den...

Using data on a panel of 56 democratic countries in the period 1975-2004, we find evidence of a negative association between political stability and economic growth which is stronger and empirically more robust in countries with high bureaucratic costs. Motivated by these results, which contrast...

This paper presents a positive model which shows that institutional setups on capital and labor markets might be intertwined by politicoeconomic forces. Two politicoeconomic equilibria arise from our model, one with little protection of insiders on capital and labor markets, and another one with...