EconPapers    
Economics at your fingertips  
 

Politicians' coherence and government debt

Giorgio Bellettini and Paolo Roberti (paolo.roberti@unibz.it)

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: We model a society that values the coherence between past policy platforms and current implemented policy, and where policy platforms partially commit candidates to their future actions. If an incumbent politician seeks to be reelected, she has to use her platforms to commit to moderate policies that can be distant from her most preferred one. Commitment is related to the incoherence cost that politicians pay when they renege on promised platforms. In this context, we suggest a novel mechanism through which issuing government debt can affect electoral results. Debt is exploited by an incumbent politician, who is in favor of low spending, to damage the credibility of her opponent's policy platforms, and be reelected. A higher level of debt decreases voters' most preferred level of spending, and makes the opponent's past platform a losing policy. Even if the latter chose to update her proposal, she would not be able to credibly commit to it, given the incoherence cost associated to changing proposals.

JEL-codes: D72 D78 H63 (search for similar items in EconPapers)
Date: 2016-11
New Economics Papers: this item is included in nep-cdm and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://amsacta.unibo.it/5456/1/WP1087.pdf (application/pdf)

Related works:
Journal Article: Politicians’ coherence and government debt (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp1087

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna (dse.info@unibo.it).

 
Page updated 2024-12-21
Handle: RePEc:bol:bodewp:wp1087