Diagnostic expectations have emerged as an important departure from rational expectations in macroeconomics and finance. We present a first treatment of diagnostic expectations in linear macroeconomic models. To this end, we establish a strong additivity property for diagnostic expectations. The...

Recent evidence suggests a positive effect of the quantity of instruction on student achievement. In this paper, I focus on the interaction between the quantity and the quality of instruction. Using international TIMSS data, I exploit within-student between-subject variation. I find that on...

We examine how political institutions influence health expenditure by using a panel of 151 developing and developed countries for the years 2000 to 2015 and four measures of democracy. Our pooled OLS analysis shows that democracies have 20-30% higher government health expenditure relative to GDP...

In recent years, Europe has experienced a large influx of refugees. While natives' attitudes toward refugees are decisive for the political feasibility of asylum policies, little is known about how these attitudes are shaped by information about refugees' characteristics. We conducted a survey...

This paper suggests using portfolio management methods in policy planning models as a practical tool for determining optimal policy under model parameter uncertainty. We suggest that in addition to calculating the standard policy return estimates, policy options should also be analyzed from the...