place? We develop a political economy theory of the endogenous emergence of fiscal crises, based on the idea that the … more likely - is higher, as is the probability of a crisis, the greater the level of favoritism. If the favored group is … important enough to be pivotal when society votes on the entitlement level, favoritism also leads to greater public expenditure …

place? We develop a political economy theory of the endogenous emergence of fiscal crises, based on the idea that the … more likely - is higher, as is the probability of a crisis, the greater the level of favoritism. If the favored group is … important enough to be pivotal when society votes on the entitlement level, favoritism also leads to greater public expenditure …

I develop a political economy theory of dynamic fiscal competition via public spending and debt. With internationally …

Zilibotti (2012) to incorporate wage inequality within each country. In this extended framework, we present conflict within and … across generations over fiscal policy and show that a low-inequality country realizes tight fiscal policy with low public … debt accumulation, whereas a high-inequality country experiences loose fiscal policy with high public debt accumulation …