Public Debt Stabilization: Redistributive Delays Versus Preemptive Anticipations
This article illustrates and formalizes the conditions under which majority voting can lead to either delays or anticipations in public debt stabilizations. Under the assumptions of proportional taxation and universal public expenditures, we present an intertemporal version of the “Meltzer-Richard” result, which captures the difficulty of controlling increases in public expenditures. In the benchmark model delays are endogenous and have redistributive effects, but when a relatively rich minority makes the decisions, we may observe anticipation in public debt stabilization.
|Date of creation:||Nov 2011|
|Date of revision:||Dec 2011|
|Contact details of provider:|| Postal: Avenida da República no 79, 1050-243 Lisboa|
Phone: 21 799 81 50
Fax: 21 799 81 54
Web page: http://www.gee.min-economia.pt
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Enrico Spolaore, 2004. "Adjustments in Different Government Systems," Economics and Politics, Wiley Blackwell, vol. 16(2), pages 117-146, 07.
- Martinelli, Cesar & Escorza, Raul, 2007.
"When are stabilizations delayed? Alesina-Drazen revisited,"
European Economic Review,
Elsevier, vol. 51(5), pages 1223-1245, July.
- Cesar Martinelli & Raul Escorza, 2004. "When Are Stabilizations Delayed? Alesina-Drazen Revisited," Working Papers 0408, Centro de Investigacion Economica, ITAM.
- César Martinelli & Raúl Escorza, 2005. "When Are Stabilizations Delayed? Alesina-Drazen Revisited," Levine's Bibliography 122247000000000667, UCLA Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:mde:wpaper:0045. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Pinheiro Alves)
If references are entirely missing, you can add them using this form.