year of a gubernatorial election, the elasticity of investment to the eventual margin of victory is 0.027. Both the …We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan …

We analyze investment by a population of hyperbolic discounting entrepreneurs. In order to avoid inefficient …. This explains an excessive level of investment in the economy. Building on this observation, we show that low risk …