The 2018 congressional elections put Democrats back in control of the House of Representatives, and thus returned divided government to Washington, but the meaning of these results for U.S. trade policy remain enigmatic. On the one hand, effective trade policymaking requires either unified...

In this paper we study the link between elections, fiscal policy and economic growth/fluctuations. The set-up is a dynamic stochastic general equilibrium model of growth and endogenously chosen fiscal policy, in which two political parties can alternate in power. The party in office chooses...