I studied the effects of monitoring on political turnover, when the politicians’ early actions affect future economic outcomes. I considered an infinite-horizon environment, where the expectation about the potential successor’s policy is endogenous. As a result, the incentive to replace the...

Optimal policy during an epidemic calls for depressed economic activity to slow down the outbreak. Sometimes, these decisions are left to local authorities (e.g. states). This creates an externality, as the outbreak does not respect states' boundaries. The externality directly exacerbates the...

The elasticity of economic restrictions with respect to the virus's reproduction rate is higher in countries that had lower pre-pandemic levels of disposable income inequality. A stylized, heterogenous agents model with costly redistribution can account for that pattern. Our results suggest...