We present a theory to explain government procrastination as a consequence of its present-bias resulting from the … theory predicts that a government with a more strongly predominant party tends to procrastinate less …

determination of government debt and deficits in a dynamic political economy model. We show that this conventional wisdom relies on … uncertainty, then a rent-seeking government actually over-saves and over-taxes along the equilibrium path relative to a benevolent … government. This result emerges because of the option value of rent-seeking: A rent-seeking government over-values future funds …

Attempting to shed light on the optimal size of government, economists have analyzed planning problems that specify a … choice of a planner who knows the welfare achieved by each policy. This paper examines choice of size of government by a … a wide range of spending levels--thus, a society can rationalize having a small or large government. I conclude that to …