IDEAS home Printed from https://ideas.repec.org/a/wej/wldecn/909.html
   My bibliography  Save this article

Averting Public Debt Tsunami

Author

Listed:
  • Jan Janků
  • Jan Libich

Abstract

This study introduces an innovative policy proposal designed to improve the fiscal stance of most countries towards long-term sustainability. We suggest implementing ‘deficit taxes’ for individuals and (100-fold higher) ‘deficit fines’ for politicians in any year in which a (cyclically adjusted) budget deficit occurs. In line with the theory of ‘rational inattention’, these taxes and fines will incentivise voters and politicians to stop ignoring debt accumulation and the threat of a fiscal crisis.

Suggested Citation

  • Jan Janků & Jan Libich, 2023. "Averting Public Debt Tsunami," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 24(4), pages 19-38, October.
    • Handle: RePEc:wej:wldecn:909
    as

    Download full text from publisher

    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=909
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wej:wldecn:909. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ed Jones (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.