Schuett, Florian; Wagner, Alexander K. - In: Journal of Public Economics 95 (2011) 11, pp. 1621-1634
Hindsight bias is a cognitive deficiency that leads people to overestimate ex post how predictable an event was. In this paper we develop a political-agency model in which voters are hindsight-biased and politicians differ in ability, defined as information concerning the optimal policy. When...