We develop an endogenous growth model in which technological progress raises the efficiency of time allocated to education and knowledge and ideology play complementary roles in determining individuals' efficiency units of labor input. A higher supply of aggregate units of efficiency labor...

We present a model of the market for news with rational consumers and profit-maximizing media outlets in which media bias arises endogenously in equilibrium. Our model relaxes assumptions commonly made in the literature that restrict the number of signals a media outlet can communicate to their...

News - or foresight - about future economic fundamentals can create rational expectations equilibria with non-fundamental representations that pose substantial challenges to econometric efforts to recover the structural shocks to which economic agents react. Using tax policies as a leading...

Politicians within any given party generally exhibit a degree similarity in terms of (political) viewpoints. Moreover, they are often constrained to follow general party lines on certain policy issues. Finally, they may be more likely to mimic one another than politicians from another party....

We analyze political representation of preferences of different income groups by matching referendum outcomes for low, middle, and high-income voters with individual legislators decisions on identical policy proposals. Results indicate that legislators more closely represent preferences of rich...

This paper presents a dynamic politico-economic theory of fiscal policy to explain the simultaneous existence of public education and pensions in modern democracies. The driving force of the model is the intergenerational conflict over the allocation of the public budget. Successive generations...

This paper explores the effect of party system institutionalization on the reliance of tax systems on the personal income tax. As a first step, the paper re-examines the relationship between party system institutionalization and taxation patterns employing the recently launched Government...