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Should we cut on the executive in order to save the constitutional state?

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  • Wasniewski, Krzysztof

Abstract

Constitutional states, as a separate category of social structures, are progressively losing their economic power, as measured with their capacity to appropriate the available capital stock. Fiscal policies, and the corresponding institutions of public finance, play a significant role in the public appropriation of capital, both through direct redistribution and indirect incentives to private allocation. Policies evolve into institutions after experimentation, yet, as a species, we are not really good at experimenting with our own social structures. The case of New Zealand and their public reforms shows an interesting path, possibly to follow, so as to increase the capacity of experimenting with fiscal policies – and to devise more efficient institutions - through enhanced fiscal prerogatives of the legislative in comparison to the executive.

Suggested Citation

  • Wasniewski, Krzysztof, 2016. "Should we cut on the executive in order to save the constitutional state?," MPRA Paper 71852, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71852
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    References listed on IDEAS

    as
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    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. J. E. Meade, 1958. "Is The National Debt A Burden?," Oxford Economic Papers, Oxford University Press, vol. 10(2), pages 163-183.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    institutional economics; political economy; fiscal policy;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • H1 - Public Economics - - Structure and Scope of Government
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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