Political Economy of Public Deficit: Perspectives for Constitutional Reform

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Title:Political Economy of Public Deficit: Perspectives for Constitutional Reform
Creators:
Geršl, Adam
Journal or Publication Title:
AUCO Czech Economic Review, 1, 1, pp. 67-86
Uncontrolled Keywords:fiscal policy, dynamic inconsistency, political economy, public deficit

Abstract

The paper uses a dynamic inconsistency model known from monetary policy to assess three alternative proposals how to reform fiscal constitution in order to limit government’s incentive to use fiscal policy for maximizing political support. The return to ever-balanced-budget rule, state- -contingent rules, and the establishment of an independent Fiscal Policy Committee with power to set public deficit with the aim of stabilizing the economy are discussed from the constitutional perspective, analyzing different incentives that these proposals create for government and alternative means to enhance credibility of the arrangement.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=8D4101D5-8C79-4EAF-B226-7B0C366B93DB&articleid=BDCED5A3-FC0A-48FB-9059-0AE8C1BC2C2A

Title:Political Economy of Public Deficit: Perspectives for Constitutional Reform
Creators:
Geršl, Adam
Uncontrolled Keywords:fiscal policy, dynamic inconsistency, political economy, public deficit
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:1
Number:1
Page Range:pp. 67-86
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:4296
Item Type:Article
Deposited On:01 Jun 2009 18:32
Last Modified:01 Jun 2009 16:32

Citation

Geršl, Adam (2007) Political Economy of Public Deficit: Perspectives for Constitutional Reform. AUCO Czech Economic Review, 1 (1). pp. 67-86. ISSN 1802-4696

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