Using panel data for 106 countries in 1971-1997, we estimate generalized least squares regressions to explain IMF lending as well as monetary and fiscal policies in the recipient countries. With respect to moral hazard, we find that a country's rate of monetary expansion and its government...

Why do the rich and poor support different parties in some places? We argue that voting along class lines is more likely to occur where states can tax the income and assets of the wealthy. In low bureaucratic capacity states, the rich are less likely to participate in electoral politics because...