A Model of Endogenous Fiscal Deficits and Delayed Fiscal Reforms
36 Pages Posted: 8 Jul 2000 Last revised: 26 Oct 2022
Date Written: December 1997
Abstract
This paper develops a political-economic model of fiscal policy one in which" government resources are a common property' out of which interest groups can finance" expenditures on their preferred items. This setup has striking macroeconomic implications. " First, fiscal deficits and debt accumulation occur even when there are no reasons for intertemporal smoothing. Second deficits can be eliminated through a fiscal reform, but such a reform may only take place after a" delay during which government debt is built up.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Budget Institutions and Fiscal Performance in Latin America
By Alberto F. Alesina, Ricardo Hausmann, ...
-
Comparative Politics and Public Finance
By Torsten Persson, Gérard Roland, ...
-
Separation of Powers and Accountability: Towards a Formal Approach to Comparative Politics
By Torsten Persson, Gérard Roland, ...
-
The Size and Scope of Government: Comparative Politics with Rational Politicians
By Torsten Persson and Guido Tabellini
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Endogenous Political Institutions
By Philippe Aghion, Alberto F. Alesina, ...
-
Budget Institutions and Fiscal Performance in Latin America
By Alberto F. Alesina, Ricardo Hausmann, ...