The Political Economy of Financial Crisis Policy. Bruegel Working Paper 2015/06, July 2015

Highlights • Government intervention to stabilise financial systems in times of banking crises ultimately involves political decisions. This paper sheds light on how certain political variables influence policy choices during banking crises and hence have an impact on fiscal outlays. • We employ cross-country econometric evidence from all crisis episodes in the period 1970-2011 to examine the impact political and party systems have on the fiscal cost of financial sector intervention. • Governments in presidential systems are associated with lower fiscal costs of crisis management because they are less likely to use costly bank guarantees, thus reducing the exposure of the state to significant contingent and direct fiscal liabilities. Consistent with these findings we find further evidence that these governments are less likely to use bank recapitalisation and more likely to impose losses on depositors.

An Investigation of Career Tenure in the European Parliament: Electoral, Party and Individual Considerations. ACES Working Papers, 2012

What explains the length of a Member of the European Parliament’s career? Little evidence of careerism has been uncovered in the European Parliament, particularly when compared to studies of legislator tenure in the U.S. Congress. Due to the different historical contexts in which these two legislatures developed, it seems reasonable to rule out many of the explanations used to account for increasing careerism in Congress in searching for the influences on legislator tenure in the European Parliament. This paper therefore proposes three potential models of careerism in the European Parliament: an electoral systems model, a party model, and an individual model. While the data necessary to test these models has not been fully compiled, this paper outlines the major hypotheses of each model and details plans for the operationalization of all independent and control variables. These models are not intended to be mutually exclusive alternatives, but rather each explanation is expected to influence each MEP in varying degrees.