We model a two-parties electoral game in an environment where voters are imperfectly informed on the administrative ability of each party. In equilibrium, parties try to manipulate voters' beliefs and implement fiscal policies that are looser than the social optimum. The size of this deviation...

This paper explores the impact of decentralization on countries' fiscal outcomes paying attention to one aspect usually neglected in the literature: the relevance of self-interested local politics. Relevance that can be proxied by the nationalization of political party systems, namely the extent...