Officials under the threat of reelection are more likely to conform with the prevailing public opinion but it is also easier for the public to monitor their actions. Constitutions should take the magnitude of these effects into account when prescribing whether the decision making power is allocated to officials who can get re-elected, to those who cannot or to the the public directly(i.e. deciding through a referendum).
Maskin & Tirole (2004) AER
Countries where leaders were installed or supported by the CIA increased their imports of US goods. The increase was mostly driven by imports in sectors where the US was not internationally competitive.
Berger et al (2013) American Economic Review
Expropriated multinationals in developing countries showed significant stock price increases before CIA-backed coups, suggesting that Top Secret information regarding the authorization for such actions was leaked.
Dube et al. (2011) Quarterly Journal of Economics
Areas in Croatia reached by Serbian public radio have a higher tendency to vote for extreme nationalist parties. Offensive anti-Serbian graffiti is also more common.
Della Vigna et al. (2014) American Economic Journal: Applied Economics
Incentives faced by local bureaucrats partially explain deforestation in Indonesia. As districts split over time, the power of bureaucrats to obtain rents decreases and, as a consequence, they allow more illegal logging. When alternative sources of revenue increase, such as oil or gas, then deforestation decreases, because bureaucrats have more to lose from being found engaging in illegal activity in the forest sector.
Burgess et al. (2012) Quarterly Journal of Economics
The introduction of television in the USA accounts for between 25% to 50% of the reduction in voter turnout since the 1950’s.
Gentzkow (2006) Quarterly Journal of Economics