This paper proposes a dynamic politico-economic theory of debt, government finance and expenditure. Agents have … choose taxation, government expenditure and debt accumulation through repeated elections. Debt introduces a conflict of … taxes do not distort labour supply, the economy progressively depletes its resources through debt accumulation, leaving …

Due to the long-standing debate about the pros and cons of using public debt as a policy tool, we know a lot about what …, in the literature on the political economy of public debt there are relatively few empirical studies which investigate … the obvious research question of what citizens think about public debt; though citizens’ opinions are likely to be …

more debt than it would be consistent with optimal fiscal policy. We also discuss numerical rules or institutional designs …

This paper proposes a dynamic politico-economic theory of debt, government finance and expenditure. Agents have … choose taxation, government expenditure and debt accumulation through repeated elections. Debt introduces a conflict of … taxes do not distort labour supply, the economy progressively depletes its resources through debt accumulation, leaving …

This paper proposes a dynamic politico-economic theory of debt, government finance and expenditure. Agents have … voters choose taxation, government expenditure and debt accumulation through repeated elections. Debt introduces a conflict … through debt accumulation, leaving future generations “enslaved”. However, if tax distortions are sufficiently large, the …

economies, whose driving force is the intergenerational conflict over debt, taxes, and public goods. Subsequent generations of … taxes and low debt accumulation. The paper characterizes the Markov-perfect equilibrium of the voting game in each economy …, as well as the stationary equilibrium debt distribution and interest rate of the world economy. The equilibrium can …