This paper estimates the causal effect of public financing support on exports using a large and plausibly exogenous shock to the supply of export financing support due to the shutdown of the U.S. Export-Import (ExIm) Bank in 2015. I utilize this unique quasi-experiment together with the...

Fiscal rules are controversial. They mitigate politicians' flexibility in responding to shocks and pursuing expansionary fiscal policy. They help, however, to handle politicians' commitment problem in fiscal policies. I portray the new and fast growing empirical literature in public economics...

By examining voting behavior in a referendum on the construction of a concert hall in Germany, I show that political ideology influences cultural policy. The results suggest that resistance to the concert hall was particularly strong in electoral districts in which majorities of citizens vote...

Globalization is blamed for many socio-economic shortcomings. I discuss the consequences of globalization by surveying the empirical globalization literature. My focus is on the KOF indices of globalization (Dreher 2006a and Dreher et al. 2008a), that have been used in more than 100 studies....

Principal-agent problems can arise when preferences of voters are not aligned with preferences of political representatives. Often the consequence of the political principal-agent problem is political catering to special interests. In this paper I provide examples of principal-agent problems...

My empirical results in Potrafke (2012) confirm past conclusions that Muslim-majority countries are less likely to be democratic. Hanusch takes issue with my results - and by inference with all past empirical results on the relation between Islam and democracy. In his comment on my study,...