von Hagen, Jürgen; Harden, Ian J. - In: Credit and Capital Markets – Kredit und Kapital 52 (2019) 4, pp. 527-536
We present a framework of investigation into the political economy of the budget process. Our model suggests that institutional rules governing the budget process can be found to limit the importance of fiscal illusion. Empirical evidence supports that proposition. The choice of rules depends on...