we characterise fiscal policy in terms of non-linear processes. We find that government spending and taxes can be described as being non-linear trend stationary processes instead of unit roots. A long run equilibrium relationship - a non-linear co-trend - does exist between the two series,...

This paper reviews experiments in macroeconomics, pointing out the theoretical justifications, the strengths and weaknesses of this approach. We identify two broad classes of experiments: general equilibrium and single-issue experiments, and emphasize the idea of theory testing that is behind...

In this paper we study the relationship between legislature size with respect to general government and welfare spending. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs have canceling effects. Bicameralism is...