We study the role of perceived threats from other cultures induced by terrorist attacks and by a criminal event on public discourse and voters’ support for radical right parties. We first develop a rule which allocates Twitter users in Germany to electoral districts and then use a machine...

We study the role of perceived threats from cultural diversity induced by terrorist attacks and a salient criminal event on public discourse and voters' support for far-right parties. We first develop a rule which allocates Twitter users in Germany to electoral districts and then use a machine...

Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...

Observed fiscal policy varies greatly across time and countries. How can we explain this variation? This paper surveys the recent literature that has tried to answer this question. We adopt a unified approach in portraying public policy as the equilibrium outcome of an explicitly specified...

We offer a theory of changing dimensions of political polarization based on endogenous social identity. We formalize voter identity and stereotyped beliefs as in Bonomi et al. (2021), but add parties that compete on policy and also spread or conceal group stereotypes to persuade voters. Parties...

We offer a theory of changing dimensions of political polarization based on endoge nous social identity. We formalize voter identity and stereotyped beliefs as in Bonomi et al. (2021), but add parties that compete on policy and also spread or conceal group stereotypes to persuade voters. Parties...