We develop a model to explore the inter-relationships between conflict and economic activity. We construct a simple two-period model where consumption and investment decisions are made in the presence of governments who consider initiating diversionary conflict to raise their chances of...

This paper employs an overlapping generations framework in which voters choose political parties based on the economic shocks faced over their lifetimes. Parties internalize voting preferences and develop platforms based on this information. The resulting equilibrium implies that voters select...

This paper presents a macroeconomic model where governments are motivated both by their ideological preference for alternative fiscal policies that vary in their short run and long run consequences and by their reelection prospects. I prove that a sequential equilibrium exists in which moderate...