Siebel, Jens Peter; Pitsoulis, Athanassios - In: Journal for Economic Educators 11 (2011) 1, pp. 25-32
The analysis of many budget deficit theories is too demanding for undergraduate students. This paper illustrates governments' incentives to create budget deficits by means of a simple graphical model. It integrates four budget deficit theories: The theory of the state as Leviathan, two different...