This paper surveys some recent literature on fiscal policy and comparative politics.
Opportunistic politicians bargain over policy.
Rational voters hold them accountable through retrospective voting. Political institutions determine the rules for legislative bargaining and for electing politicians to office. The paper discusses both theory and evidence, and concludes with some speculations about directions for future research. Paper provided by Munich - Center for Economic Studies in its series Papers with number 265. 8000 Munich 22, Germany.