Marina, Azzimonti; Marco, Battaglini; Stephen, Coate - Volkswirtschaftliche Fakultät, … - 2010
This paper uses the political economy model of Battaglini and Coate (2008) to analyze the impact of a balanced budget rule that requires that legislators do not run deficits. It considers both a strict rule which cannot be circumvented and a rule that can be overridden by a super-majority of...