An influential body of economic literature has consistently shown strong associations between cognitive abilities and economic preferences. However, much of this research has overlooked the potential endogeneity of cognitive abilities - an oversight given that these abilities stem from a series of investment decisions influenced by factors likely correlated with economic preferences. To address...
We study the impact of fossil fuel subsidy removal on presidential popularity using difference-indifference approaches and a stylized theoretical model. Analyzing macro level data for two subsidy removal events in Mexico and Bolivia in the early 2010s, we find evidence of a negative impact on presidential approval. Our theoretical probabilistic voting model predicts that the decline in popularity is ...
We evaluate German purchase subsidies for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) using data on new vehicle registrations in Germany dur¬ing 2015-2022. We account for confounding time trends and interacting EU-level CO2 standards using neighboring countries as a control group. We find that 40% of BEV and 25% of PHEV registrations were subsidy-induced. The program ...
Fiscal Policy under the Eyes of Wary Bondholders
Collateral Policy Shocks
