This paper investigates the impact of foreign aid on the quality of institutions in recipient countries. Our identification strategy exploits the shift in US foreign policy due the attacks on the World Trade Center on September 11th, 2001 as a quasi-natural experiment. The associated change in...

We derive four sets of counterfactual national interest rate paths for the 17 Euro Area countries for the time period 1999 to 2012. They approximate desirable national interest rates countries would have liked to implement if they could still conduct independent monetary policy. We find that...

This paper introduces hyperbolic discounting into politics. In our model, politicians act according to the preferences of voters in order to be re-elected. As voters' preferences are dynamically inconsistent, the political process results in an allocation of the public budget that is distorted...

Using a panel of naturalizations in U.S. states from 1986 to 2012, we empirically analyze the impact of elections on immigration policy. Our results indicate that immigration policy is (partly) driven by national elections: there are more naturalizations in presidential election years and during...

Despite widespread agreement that asylum policies are partly determined by political economy factors in the destination country, there is little empirical evidence on the precise linkage between those political factors and asylum policies. We shed light on this issue by examining the impact of...