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Intra-Generational Conflict: The Role of Balanced Budget Rules

Author

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  • Niepelt, Dirk

    (Institute for International Economic Studies, Stockholm University)

Abstract

A balanced budget requirement directly affects the intra-generational wealth distribution and influences the level of government spending. Both effects give rise to distributive conflicts that can explain why some groups support balanced budget rules while other groups in the same generation oppose them. Simulations suggest that such distributive conflicts are prevalent. I argue that intra-generational distributive conflicts offer a more convincing explanation for the observed partial support for balanced budget rules than alternative theories based on inter-generational conflict or efficiency considerations.

Suggested Citation

  • Niepelt, Dirk, 2003. "Intra-Generational Conflict: The Role of Balanced Budget Rules," Seminar Papers 722, Stockholm University, Institute for International Economic Studies.
    • Handle: RePEc:hhs:iiessp:0722
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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