We develop a two-period model of redistributive politics in which two politicians compete in an election in each period. In the first period, the politicians propose both whether to experiment with an efficient reform with uncertain benefits and choose the amount of public debt. Politicians also...

Mass media plays a crucial role in information distribution and thus in the political market and public policy making. Theory predicts that information provided by mass media reflects the media's incentives to provide news to different types of groups in society, and affects these groups'...

Free media may not favor political accountability when other democratic institutions are weak, and may even bring undesirable unintended consequences. We propose a simple model in which candidates running for office may engage in coercion to obtain votes. A media scandal exposing these...

This paper considers terrorism as an extortion activity. It uses tools from the theory of extortion and from conflict theory to describe how terrorism works, why terrorism is a persistent phenomenon, why terrorism is a violent phenomenon, and how retaliation affects the outcome. The analysis...

This paper surveys the recent literature on the political economy of the formation of international environmental agreements. The survey covers theoretical modelling approaches and empirical studies including experimental work. Central to our survey is the question how the political process...

We examine how democracies choose their amount of checks and balances (C&B). For this purpose, we consider a simple model of political competition with costly policy reforms. The cost of a marginal reform is determined endogenously at the constitutional phase-i.e. before policies are...

Building on the large and growing empirical literature on the political behavior of individuals in low income countries, this Chapter seeks to understand corruption through the lens of political economy – particularly in terms of the political and economic differences between rich and poor...