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Politicians’ coherence and government debt

Author

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  • Giorgio Bellettini

    (University of Bologna)

  • Paolo Roberti

    (University of Bergamo)

Abstract

We model a society that values coherence between the long-term commitment of politicians to given levels of public good provision and current policy. In that context, we suggest a novel mechanism by which issuing government debt can affect electoral results. Debt is exploited by an incumbent politician who favors a low level of public good supply, taking advantage of the cost paid by her opponent, who is committed to a higher level of supply. More public debt reduces voters’ preferred level of public good consumption and therefore are less likely to elect the opponent, given her commitment to a losing policy.

Suggested Citation

  • Giorgio Bellettini & Paolo Roberti, 2020. "Politicians’ coherence and government debt," Public Choice, Springer, vol. 182(1), pages 73-91, January.
    • Handle: RePEc:kap:pubcho:v:182:y:2020:i:1:d:10.1007_s11127-019-00669-5
    DOI: 10.1007/s11127-019-00669-5
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    Cited by:

    1. Samuele Murtinu & Giulio Piccirilli & Agnese Sacchi, 2022. "Rational inattention and politics: how parties use fiscal policies to manipulate voters," Public Choice, Springer, vol. 190(3), pages 365-386, March.
    2. Sofia Semik & Lilli Zimmermann, 2022. "Determinants of substantial public debt reductions in Central and Eastern European Countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(1), pages 53-70, February.
    3. Giorgio Bellettini & Paolo Roberti, 2020. "Politicians’ coherence and government debt," Public Choice, Springer, vol. 182(1), pages 73-91, January.

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    More about this item

    Keywords

    Voting; Strategic debt; Commitment; Coherence;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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