Draws on historical events, budgetary documents, and public opinion data to reveal that voters are more willing to take action to reduce federal spending, explaining how voter-supported proposals could solve the nation's financial problems

In this paper we use a general equilibrium model with heterogeneous agents to assess the macroeconomic and welfare consequences in the United States of alternative fiscal policies over the medium-term. We find that failing to address the fiscal imbalances associated with current federal fiscal...