Do Leaders Affect Government Spending Priorities?
---- Acknowledgments ----
We wish to thank seminar participants at the IMF Institute Brownbag Workshop, University of Maryland, and the Israeli Economic Association Meetings 2009 for comments, especially Nuno Limão and Peter Murrell, and Yehuda Porath for superb research assistance. Drazen thanks the research department of the Bank of Israel for its hospitality while this paper was being written. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.