We propose an indicator of the degree of conservativeness of an independent central bank and we derive its optimal social value. We show that from a normative perspective, one can either design a central bank that cares about public spending or that it does not -but in the latter case the...

Starting from the median voter model commonly used in the literature to analyse the determinants of the functional distribution of public spending, we propose a new multiproduct dynamic model that also allows one to classify the nature of the interaction –complementarity or...

Starting from the median voter model commonly used in the literature to analyse the determinants of the functional distribution of public spending, we propose a new multiproduct dynamic model that also allows one to classify the nature of the interaction –complementarity or substitutability–...