This paper analyzes fiscal competition under budget rigidities and tax equity (fairness norms). We outline a numerically solvable political economic model that treats the outcome of tax competition as one argument in the governments utility function, the others being public expenditure and tax...

This paper analyzes the impact of the number of parties on turnover rates within an endogenous partisan preference framework. Our results show that the turnover increases in the number of parties under various levels of individual propensity to abstain. We find strong interactions effects...

This paper analyzes the estimation of time-invariant variables in panel data models with unit-effects. We compare three procedures that have frequently been employed in comparative politics, namely pooled-OLS, random effects and the Hausman-Taylor model, to a vector decomposition procedure that...

This paper perceives the politics of EU eastern enlargement to be a twofold process, in which governments of transition countries decide whether or not to apply for membership and in turn EU members decide whether or not to accept these applicants. Specifically, we argue that the level of...

Argument: The paper argues that the introduction of the Euro has considerably reduced de facto monetary policy autonomy in non-ECU members. We start from a simple Mundellian model, in which currency unions raise economic efficiency but reduce monetary policy autonomy. Our main argument holds...

This paper analyzes the properties of a computational model of multi-party competition in two and three policy dimensions. We present four substantive results: Firstly, centrifugal incentives prevent rational parties from moving to the mean of voters' preference distributions. Secondly, the...

This article reinforces our 2007 Political Analysis publication in demonstrating that the fixed effects vector decomposition (FEVD) procedure outperforms any other estimator in estimating models which suffer from the simultaneous presence of time-varying variables correlated with unobserved unit...