We consider a two period model in which an incumbent political party chooses the level of a current policy variable unilaterally, but faces competition from a political opponent in the future. Both parties care about voters' payoffs, but they have different beliefs about how policy choices will...

Can tax policy foster the creation of new companies? To answer this question, we assemble a novel country-industry level panel database with data on entry (by incorporation) for 17 European countries between 1997 and 2004. Our analysis is based on recent models of how corporate taxation affects...

We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good provision are decided by a self-interested politician who cannot commit to policies. We show that, as long as the politician is as patient as the citizens, the Chamley–Judd...

We analyze whether local land supply is influenced by the degree of political competition, and interpret the findings as indications of the influence wielded by land developer lobbies. We use a new database including both political and land supply data for more than 2,000 Spanish municipalities...

Immigration is today one of the most hotly debated policy issues in the United States. Despite marked divergence of opinion even within political parties, several important reforms have been introduced in the post 1965 era. The purpose of this paper is to carry out a systematic analysis of the...

We present a formal model of government control of the media to illuminate variation in media freedom across countries and over time. Media bias is greater and state ownership of the media more likely when the government has a particular interest in mobilizing citizens to take actions that...

The purpose of this paper is to assess whether the timing of elections affects tax policy choices. To do so, we exploit information on the German local business tax which is set autonomously by German municipalities. As the dates for local council elections vary across German states, the data...