This paper surveys some recent literature on fiscal policy and comparative politics. Economic policy is viewed as the outcome of a game with multiple-principals and multiple-agents. Opportunistic politicians bargain over policy. Rational voters hold them accountable through retrospective voting....

This paper surveys some recent literature on fiscal policy and comparative politics. Economic policy is viewed as the outcome of a game with multiple-principals and multiple-agents. Opportunistic politicians bargain over policy. Rational voters hold them accountable through retrospective voting....

Inspired by the current European developments, we study equilibrium fiscal policy under alternative constitutional arrangements in a “federation” of countries. There are two levels of government: local and federal. Local policy redistributes across individuals and affects the probability of...