The Political Economy of the Budget Surplus in the U.S

27 Pages Posted: 30 Mar 2000 Last revised: 26 Dec 2022

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: January 2000

Abstract

Current surpluses in the U.S. have been achieved by a combination of a strong economy, low interest rates, and sharp cuts in defence spending. These surpluses follow a period (the eighties) of rather exceptional budget deficits. This paper investigates the origin, size, and expected future patterns of the U.S. budget balance. It discusses how different political forces may generate alternative fiscal scenarios for the U.S. in the next decade.

Suggested Citation

Alesina, Alberto F., The Political Economy of the Budget Surplus in the U.S (January 2000). NBER Working Paper No. w7496, Available at SSRN: https://ssrn.com/abstract=214631

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