We show that regional heterogeneity of underlying fundamentals (e.g. economic history, geography, social capital) can lead to extreme voting in federations. When the outcome of federal policies – such as transfer schemes, market regulation or migration laws – depends on these fundamentals,...

As part of a collective answer to the threat posed by the Great Recession to several Member States' public finances, the European Commission's November 2011 Green Paper discussed the introduction of Stability Bonds (or Eurobonds) that would partially or completely replace the national bonds of...

The role of financial crises in boosting populism has been well documented. Yet the specific mechanisms through which this occurs remain elusive. This paper studies how populist candidacies were fueled by a case of public financial mismanagement, which became salient during the Great Recession....

We investigate the causal nexus between pandemic distress and anti-immigration sentiments. We exploit the disruption brought about by the Covid-19 outbreak to randomly provide survey respondents with information on both the economic and health consequences of the pandemic. Overall, we find that...

We show that the War on Drugs launched by the Mexican President Felipe Calderón in 2007 pushed drug cartels into large-scale oil thefts. Municipalities that the presidential candidate’s party barely won at the local elections in 2007-2009 exhibit a larger increase in illegal oil taps over the...