The twelfth edition of the long-standing workshop ‘Public Finance and Political Economy’ once again brought leading economists together at the Harnack House to discuss current developments and research questions in the field of public finance policy and political institutions.
On 12 and 13 February 2026, the workshop ‘Public Finance and Political Economy XII’ took place under the direction of Kai A. Konrad from the Max Planck Institute for Tax Law and Public Finance. The event, which has established itself as a fixture in the department's academic exchange, offered a varied programme on key topics in political economy and public finance. The papers presented ranged from issues of international climate negotiations and political institutions to empirical analyses of political representation, fiscal rules, and institutional frameworks for economic policy decisions.
The first day of the workshop was devoted, among other things, to the role of voluntary commitments in climate negotiations and the effects of institutional rules and political measures on individual behaviour and election results. Contributions from researchers highlighted, for example, the effect of relocating authorities to structurally weak regions on the election results of established and populist parties, as well as how communication shapes the behaviour of teams in strategic competition. The diversity of approaches – from experimental and theoretical analyses to empirical studies – underscored the breadth and topicality of research in the field of political economy.
A highlight of the workshop was the evening lecture by Stefan Kooths from the Kiel Institute for the World Economy. In his presentation on the current state of the German economy, he analysed structural challenges and emphasised the need for comprehensive reforms to strengthen market economy processes. The lecture sparked an intense discussion about economic policy reform options and their political feasibility.
The second day featured contributions from scholars such as Bruno S. Frey and Margit Osterloh (both CREMA), who presented an innovative indicator for measuring political dissent in autocratic countries and examined the impact of quotas in leadership structures. Other presentations examined the role of institutional debt restrictions on the fiscal leeway of local authorities and the challenges of political representation following the electoral reform to reduce the size of the German Parliament.
March 2026