Substantial evidence from psychology suggests that resisting temptation (exercising self-control) in one domain subsequently reduces one's capacity to regulate behavior in other domains. A reason is that people have limited self-regulatory resources, and self-regulatory failure occurs when these...

We investigate the interdependence of fiscal policies, and in particular deficits, in the European Union using an empirical analysis based on real-time fiscal data. There are many potential reasons why fiscal policies could be interdependent, such as direct externalities due to cross-border...