Becker, Johannes Gerd; Gersbach, Hans; Grimm, Oliver - C.E.P.R. Discussion Papers - 2010
We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the … majority rule when individuals differ regarding their benefits from public-good provision. We establish the existence of … lower under the debt-sensitive majority rule if preferences regarding public goods are sufficiently heterogeneous and if the …