Received wisdom suggests that 'excessive' wages, defined as the part of real wages that do not follow labour productivity developments, are adversely associated with the return on capital. This paper argues that excessive wages and profits are better thought of as responses to changes in the...

A growing literature suggests that office motivated politicians manipulate fiscal policy instruments in order to seek their re-election. This paper investigates the impact of electoral manipulation of the level and composition of fiscal policy on incumbent’s re-election prospects. This impact...

We describe the political-economic environment that precipitated the Greek crisis. Involved were nocuous collaborations between private interests and the formally appointed custodians of the public interest, and a captured politicized bureaucracy. The confluence of these forces aided in the...

This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our empirical method is based on a consistent treatment of the...