The Political Economy of Public Debt
We survey recent theories of public debt that incorporate political decision making in rich dynamic environments. These theories provide a new framework with which to interpret empirical evidence and to assess institutional reforms that may help control political inefficiencies. We discuss the inefficiencies that lead to overaccumulation of debt and their implications for the long-run distribution of debt.
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Volume (Year): 3 (2011)
Issue (Month): 1 (09)
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