As of July 19, 2018

SILVAPLANA 2018

27th Workshop on Political Economy

The Silvaplana political economy group with the sponsorship of European Journal of Political Economy (Elsevier)

Friday/Saturday July 20/21 optional arrival, but requested for long-distance travelers

Sunday 14.15 pm July 22 – Thursday 12.30 pm July 26 2018

Sporthotel, , Via Maistra 145 CH - 7504 Pontresina T +41 81 838 94 00 [email protected] www.sporthotel.ch

Organizers Arye L. Hillman, Bar-Ilan University Heinrich W. Ursprung, University of Konstanz

Program committee Toke Aidt, University of Cambridge Carsten Hefeker, University of Siegen François Facchini, Université Paris 1, Panthéon-Sorbonne Pierre-Guillaume Méon, Université libre de Bruxelles Niklas Potrafke, Univerrsity of Munich and Ifo Institute Elena Seghezza, University of Genoa Jan-Egbert Sturm, KOF, ETH Zurich

Conference coordinator Iris Mann, University of Konstanz [email protected]

Program p. 2 Participants p. 11 Rules of the workshop p. 12 Notes p 13 Travel information p. 14

S I L V A P L A N A 2 0 1 8 W ORK S H O P O N P O L I T I C A L E CONOM Y

SATURDAY JULY 21

19.30 pm – dinner at the hotel (separate section in the dining room)

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SUNDAY JULY 22

7.15 am – breakfast at the hotel (separate section for workshop participants)

8.45 am – 12.00 noon – mountain walk (meet in lobby)

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Session 1.1

Chair, Istvan Abel

14.15 pm (1) Markus Brückner Local Autonomy and Government Spending Multipliers: Evidence from European Regions Discussion openers: Sun-Mi Lee, Jan-Egbert Sturm

14.45 pm (2) Jerg Gutmann Is Judicial Independence Good for Business? Discussion openers: Andreas Fabritius, Irina Levina

15.15 pm (3) Daryna Grechyna Properties and Drivers of Political Polarization: Evidence from the UK Discussion openers: James Rockey, Toke Aidt

Coffee break: 15.45 pm - 16.15 pm

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Session 1.2

Chair, Jan-Egbert Sturm

16.15 pm (4) Vera Eichenauer The Economic and Political Consequences of Regional Autonomy: Evidence from the Swiss Canton of Jura Discussion openers: Markus Brückner, Christoph Schaltegger

16.45 pm (5) Martin Gassebner Conflict escalation, civil wars and the composition of the military Discussion openers: Raul Caruso, Niklas Potrafke

17.15 pm (6) Martin Mosler The Pleasure of Destruction Revealing Antisocial Preferences of Party Supporters and Military Personnel in an Experimental Setting Discussion openers: Jan Falkowski, Daryna Grechyna

17.45 pm (7) Klaus Gründler Culture, Diversity, and the Welfare State Discussion openers: Daniele Girardi, Hien Thuc Pham

18.15 end

19.30 pm – DINNER

After dinner session 1.3

Chair, Carsten Hefeker

20.45 pm (8) Panu Poutvaara Preferences for Redistribution and International Migration Discussion openers: Kai Gehring, Martin Gassebner

21.30 pm END

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MONDAY JULY 23

7.00 am – BREAKFAST

Session 2.1

Chair, Wilfred Ethier

8.10 am (9) Daniele Girardi Political shocks and financial markets: Regression-discontinuity evidence from national elections Discussion openers: Carsten Hefeker, Jacek Rothert

8.40 am (10) Pierre-Guillaume Méon Democratic dynasties against autocratic reversals: the case of ’s 1940 enabling act Discussion openers: Francois Facchini, Tommy Krieger

9.10 am (11) Tommy Krieger Political institutions and property rights Discussion openers: Jan-Egbert Sturm, Jamus Lim

Coffee break 9.40 – 10.00 am

Session 2.2

Chair, Martin Gassebner

10.00 am (12) Raul Caruso Military expenditures and Income Inequality Evidence from a Panel of Transition Countries Discussion openers: Johannes Blum, Klaus Gründler

10.30 am (13) Niklas Potrafke Election systems and the Beauty Premium in Politics Discussion openers: Pierre-Guillaume Méon, Panu Poutvaara

11.00 am (14) Anna Maria Koukal Chance or threat? Effects of non-citizens voting rights on natives’ attitudes towards immigrants Discussion openers: Panu Poutvaara, Stefanie Gäbler

11.30 am (15) Marek Endrich & Jerg Gutmann Pacem in Terris: Are Papal Visits Good News for Human Rights? Discussion openers: Mario Ferrero, Anna Maria Koukal

12.00 END 4

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AFTERNOON PROGRAM

• Option 1

12.15 pm MEET OUTSIDE HOTEL for hiking

• Option 2

14.00 pm OPTIONAL SPECIAL AFTERNOON SESSION (may also take place on another day)

Chair, Arye Hillman

presentations by Mario Ferrero, Idit Sohlberg, Debora Di Gioacchino

19.00 pm – DINNER

After dinner session 2.3

Chair, Istvan Abel

20.45 pm (16) Toke Aidt Franchise extension and redistribution: evidence from the 1820-1913 Discussion openers: Moritz Janas, Klaus Gründler

21.30 pm END

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TUESDAY JULY 24

7.00 am – BREAKFAST

Session 3.1

Chair, Elena Seghezza

8.10 am (17) Johannes Blum Does change of government influence compliance with international treaties? Empirical evidence for the NATO 2%-target Discussion openers: Martin Gassebner, Raul Caruso

8.40 am (18) Stefanie Gäbler The effects of direct elections on public services and spatial inequalities – Quasi-experimental evidence from Discussion openers: Vera Eichenauer, Johannes Rode

9.10 am (19) James Rockey Power and the money, money and the power: A network analysis of donations from American corporate to political leaders Discussion openers: Phoebe Ishak, Kai Gehring

Coffee break 9.40 – 10.00 am

Session 3.2

Chair: Carsten Hefeker

10.00 am (20) Irina Levina Decentralization of firms in a country with weak institutions: Evidence from Russia Discussion openers: Jerg Gutmann, Carsten Hefeker

10.30 pm (21) Christoph Schaltegger The Initiative, the Referendum and the Distribution of Income: an Empirical Analysis for Swiss Cantons Discussion openers: Su-Min Lee, Vera Eichenauer

11.00 pm (22) Jan Falkowski Does social mobilisation matter? The impact of civic engagement with monitoring the 2015 presidential elections in Discussion openers: Daryna Grechyna, Monika Köppl-Turyna

11.30 END

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12.00 pm MEET OUTSIDE HOTEL

19.00 pm – DINNER

After dinner session 3.3

Chair, François Facchini

20.45 pm (23) Arye Hillman The Political Economy of Public Finance and Public Policy Discussion openers: Frank Bohn, Elena Seghezza

21.30 pm END

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WEDNESDAY JULY 25

7.00 am – BREAKFAST

Session 4.1

Chair, Pierre-Guillaume Méon

8.10 am (24) Elena Seghezza A political economy approach to German hyperinflation Discussion openers: Peter Bernholz, Debora Di Gioacchino

8.40 am (25) Mor Zahavi Locational Choice and Immigrants’ Skills Discussion openers: Zurab Abramishvili, Markus Mosler

9.10 am (26) Phoebe W. Ishak Autocratic survival in oil Abundant countries: Does oil make a difference? Discussion openers: Johannes Rode, Jan Falkowski

Coffee break 9.40 – 10.00 am

Session 4.2

Chair, Toke Aidt

10.00 am (27) Zurab Abramishvili Political and Merit-based Selection: Evidence from a Natural Experiment in Education Discussion openers: Nadia Zakir, Johannes Blum

10.30 am (28) Moritz Janas Delegation to a group Discussion openers: James Rockey, Monika Köppl-Turyna

11.00 am (29) Francois Facchini Environmental promises and the dynamic of government spending on environment Discussion openers: Arye Hillman, Moritz Janas

11.30 pm END

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12.00 pm MEET OUTSIDE HOTEL

19.00 pm – DINNER

After dinner session 4.3

Chair, Jan-Egbert Sturm

20.45 pm (30) Monika Köppl-Turyna Public sector efficiency in Europe: Long-run trends, recent developments and determinants Discussion openers: Jamus Lim, Niklas Potrafke

21.30 END

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THURSDAY JULY 26

7.00 am – BREAKFAST

Session 5.1

Chair, Heinrich Ursprung

8.10 am (31) Johannes Rode From Green Users to Green Voters Discussion openers: Markus Mosler, Andreas Fabritius

8.40 am (32) Hien Thuc Pham Culture and fiscal response to business cycles Discussion openers: Marek Endrich, Daniele Girardi

9.10 am (33) Su-Min Lee Top-Down or Bottom-Up? The Impact of Elections on Spending Allocations in US State Legislatures Discussion openers: Stefanie Gäbler, Anna Maria Koukal

Coffee break 9.40 – 10.00 am

Session 5.2

Chair: Arye Hillman 10.00 am (34) Kai Gehring Aid and conflict at the sub-national level - Evidence from World Bank and Chinese development projects in Africa Discussion openers: Pierre Guillaume Mèon, Jerg Gutmann

10.30 am (35) Jacek Rothert Institutions, Volatility, and Growth: Quantitative Theory of Bad Governments Discussion openers: Frank Bohn, Marcus Brückner

11.00 am (36) Frank Bohn Elections, Recession Expectations and Excessive Debt: An Unholy Trinity Discussion openers: Toke Aidt, Jacek Rothert

11.30 am (37) Jamus Lim Human Capital Destruction and Economic Performance: Quasi-Experimental Evidence from China's Cultural Revolution Discussion openers: Irina Levina, Hien Thuc Pham

12.00 pm CONCLUDING REMARKS

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12.30 END

PARTICIPANTS

1. Abel, Istvan, Budapest Business School, Hungary, [email protected] 2. Abramishvili, Zurab, ISET, Georgia, [email protected] 3. Aidt, Toke, University of Cambridge, UK, [email protected] 4. Bernholz, Peter, University of Basel, Switzerland, [email protected] 5. Blum, Johannes, ifo Institute Munich, Germany, [email protected] 6. Bohn, Frank, Radboud University, Nijmegen, The , [email protected] 7. Brückner, Markus, Australian National University, Australia, [email protected] 8. Caruso, Raul, Catholic University, Milano, [email protected] 9. Di Gioacchino, Debora, Sapienza University of Rome, Italy [email protected] 10. Eichenauer, Vera Z., KOF, ETH, Zurich, Switzerland, [email protected] 11. Endrich, Marek, University of Hamburg, Germany, [email protected] 12. Ethier, Wilfred, University of Pennsylvania, USA, [email protected] 13. Fabritius, Andreas, ifo Institute Munich, Germany, [email protected] 14. Facchini, François, Université Paris 1, Panthéon-Sorbonne, France, [email protected] 15. Falkowski, Jan, University of , Poland, [email protected] 16. Ferrero, Mario, Università del Piemonte Orientale, Alessandria, Italy, [email protected] 17. Forte, Francesco, Sapienza University Rome, Italy, [email protected] 18. Gäbler, Stefanie, Ifo Institute Munich, Germany, [email protected] 19. Gassebner, Martin, University of Hannover, Germany, [email protected] 20. Gehring, Kai, KOF, ETH, Zurich, Switzerland [email protected] 21. Girardi, Daniele, University of Massachusetts Amherst, USA, [email protected] 22. Gutmann, Jerg, University of Hamburg, Germany, [email protected] 23. Grechyna, Daryna, Middlesex University London, UK, [email protected] 24. Gründler, Klaus, University of Würzburg, Germany, [email protected] 25. Hefeker, Carsten, University of Siegen, Germany, [email protected] 26. Hillman, Arye, Bar-Ilan University, Israel, [email protected] 27. Ishak, Phoebe W., University of Hamburg, Germany, [email protected] 28. Janas, Moritz, University of Konstanz, Germany, [email protected] 29. Köppl–Turyna, Monika, Vienna University of Economics and Business and Agenda, , [email protected] 30. Koukal, Anna Maria, Univeristy of Fribourg, Switzerland, [email protected] 31. Krieger, Tommy, University of Konstanz, Germany [email protected] 32. Lee, Su-Min, University of Cambridge, UK, [email protected] 33. Levina, Irina, Higher School of Economics National Research University, Russia, [email protected] 34. Lim, Jamus Jerome, ESSEC Business School, France, [email protected] 35. Méon, Pierre-Guillaume, Université libre de Bruxelles (ULB), Belgium, [email protected] 36. Mosler, Martin, ifo Institute Munich, Germany, [email protected] 37. Potrafke, Niklas, Ifo Institute and University of Munich, Germany, [email protected] 38. Poutvaara , Panu, Ifo Institute and University of Munich, Germany, [email protected] 39. Rockey, James, University of Leicester, UK, [email protected] 40. Rode, Johannes, TU Darmstadt, Germany, [email protected] 41. Rothert, Jacek, University of Minnesota, USA, [email protected] 42. Schaltegger, Christoph, University of Lucerne, Switzerland, [email protected] 43. Seghezza , Elena, University of Genoa, Italy, [email protected] 44. Sohlberg, Idit, Ariel University, Israel, [email protected] 45. Sturm, Jan-Egbert KOF, ETH, Zurich, Switzerland, [email protected] 46. Thuc Pham, Hien, Griffith University, Australia, [email protected] 47. Ursprung, Heinrich W., University of Kontanz, Germany, [email protected] 48. Zahavi, Mor, Bar-Ilan University, Israel, [email protected] 49. Zakir, Nadia, University of Leicester, UK, [email protected]

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RULES

Attendance at sessions You are asked to attend all sessions. We have a tradition that the first and last presenters have the same audience as other presenters. If you cannot commit to attend all sessions, please cancel your participation.

Computers and phones Please do not activate personal computers during presentations. There is evidence that computers are alienating for presenters. People look at the computer as if the presenter is not present. Place phones on silent. Please try to check email on your phone no more than once an hour. If reply is not instantaneously urgent, we ask that you wait for the end of the session to reply.

Clapping and other demonstrative behavior Please do not clap after a presentation ends or hit the table. No information is conveyed by clapping or hitting the table because this is the response in general to all papers.

Presenters Each paper is allocated 30 minutes. Presenters have 14 minutes. Format: • Slide #1: why the research question is interesting • Slides #2: answers to the research question in prior literature • Next slides: the contribution to the answer to the research question • Conclusions – the message of the paper Presenters should place their files on the computer in the conference room during the break before presentation of the paper.

Discussion openers Discussion openers have limit of 2 minutes. The discussion should focus on main issues. Please do not thank the presenter of the paper and there is no need to say how much you enjoyed reading the paper. Discussion openers open the discussion from their seats and do not use slides.

Chair Strictly enforce the 14 minute time limit for speakers If there are no further comments, do not attempt to evoke comments but move to the next paper or close the session. If there is interesting discussion and people want to continue to comment, allow the discussion to proceed beyond the time limit for the paper – other papers may end earlier.

Seating When you enter the conference room, please take the first seat available around the table. If the main table is full, please then go to the outside table. This is the most efficient way to fill up the table. This could also be a rule for breakfast and dinner: you will meet new people.

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NOTES

Copies of the workshop program Print and bring a copy of the workshop program to the workshop. Copies of the program will not be provided at the workshop.

Papers Send the final version of your paper to Arye Hillman and Heinrich Ursprung, and to your discussion openers by July 15.

Timing of sessions The times of the sessions can change contingent on the weather and weather predictions.

Workshop fee There is a workshop fee of CHF 100, paid at the beginning of the first session on Sunday morning. Please place 100 francs in the envelope provided in the table in the conference room and take your receipt.

Arrivals from afar If you are coming from afar, we ask that you arrive a day or more early to avoid jet lag.

Free local travel pass Ensure that you pick up your free regional travel pass from the hotel reception when you check in at the hotel. There will a deposit required against returning the pass.

Hotel facilities The hotel has a spa pool and sauna.

Meals Breakfast and dinner are included but not lunch. In general, it will be possible to purchase a sandwich at a stop on a mountain walk. You may prefer to take a sandwich. There is little time to buy lunch between the end of the last session and departure for the mountain walks so you have to make preparations in advance.

Equipment You require a small backpack for a sandwich and water. Walking shoes are useful but ordinary sports shoes are sufficient. Normal shoes are not recommended for hikes. A hat and sunscreen are required for the mountain walks.

Time constraints We leave from outside of the hotel at a pre-designated time after the last morning session. You will have 10 minutes to change shoes, etc. We shall need to catch a bus or a train and therefore cannot leave later than at the time that will be indicated. Please be outside the hotel at the designated time. Remember to bring the free travel card supplied by the hotel.

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TRAVEL TO THE SPORTHOTEL PONTESINA

Trains Trains leave Zurich airport railway station. You will need to change trains at Zurich main station, again at , and then perhaps one more time at Samedan, one stop before Pontresina. There is also a bus from Samedan directly to the hotel in Pontresina. If you are arriving on Sunday, the 9.13 am departure from Zurich airport arrives in Pontresina at 12.56 pm. The workshop begins at 13.05 pm. Trains also arrive at Pontresina from in Italy. There is a train from Milano central station to Tirano, where you change from the Italian station to the Swiss station for the Swiss train.

Railways station pick-up The hotel van can pick you up at Pontresina railway station. Inform the hotel reception of the time at which your train arrives. If you wish to walk from the railway station, proceed across the bridge and up the hill to the main street of Pontresina to the hotel, a 10 minute or so walk.

Bus If you arrive in Pontresina by bus from Samedan or St Moritz railway stations, the bus stops on the main street not far from the hotel. From Malpensa airport Milano, there is a coach service to Lugano. A bus to St Moritz, the Palm Express, leaves once a day at 11.40 am from the parking lot at the northern end of Lugano railway station. Change buses in Silvaplana for the bus to Pontresina if the Pontresina bus is waiting in Silvaplana. If not, continue on the Palm Express to St Moritz and take a bus to Pontresina from there.

Car You will not need a car during the duration of the workshop. If you bring a car, you will need to pay for parking.

COMMONLY ASKED QUESTIONS Why is the workshop called ‘Silvaplana’? The answer is that we began in Silvaplana and after some years moved to Pontresina. We keep ‘Silvaplana’ because we tend to be conservative and because perhaps we shall move back there one day.

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