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Political Disagreement, Lack of Commitment and the Level of Debt

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  • Ricardo Nunes

    (Universitat Pompeu Fabra)

  • Davide Debortoli

    (Universitat Pompeu Fabra)

Abstract

debt is sensibly increasing in the degree of political disagreement. Lower degree of commitment drives debt toward zero, while the frequency of political turnover does not produce relevant effects.

Suggested Citation

  • Ricardo Nunes & Davide Debortoli, 2007. "Political Disagreement, Lack of Commitment and the Level of Debt," 2007 Meeting Papers 725, Society for Economic Dynamics.
  • Handle: RePEc:red:sed007:725
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    Cited by:

    1. Nunes, Ricardo, 2008. "Delegation and Loose Commitment," MPRA Paper 11555, University Library of Munich, Germany.
    2. Bodenstein, Martin & Hebden, James & Nunes, Ricardo, 2012. "Imperfect credibility and the zero lower bound," Journal of Monetary Economics, Elsevier, vol. 59(2), pages 135-149.
    3. Cambell Leith & Simon Wren-Lewis, 2008. " Electoral Uncertainty and the Deficit Bias in a New Keynesian Economy," CDMA Conference Paper Series 0803, Centre for Dynamic Macroeconomic Analysis.
    4. Marina Azzimonti, 2015. "The dynamics of public investment under persistent electoral advantage," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(3), pages 653-678, July.
    5. Davide Debortoli & Ricardo Nunes, 2007. "Loose commitment," International Finance Discussion Papers 916, Board of Governors of the Federal Reserve System (U.S.).
    6. Malte Rieth, 2017. "Capital Taxation and Government Debt Policy with Public Discounting," Discussion Papers of DIW Berlin 1697, DIW Berlin, German Institute for Economic Research.
    7. Davide Debortoli & Ricardo Nunes, 2008. "The macroeconomic effect of external pressures on monetary policy," International Finance Discussion Papers 944, Board of Governors of the Federal Reserve System (U.S.).
    8. repec:eee:dyncon:v:85:y:2017:i:c:p:1-20 is not listed on IDEAS

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