Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt

Zheng Song (), Kjetil Storesletten and Fabrizio Zilibotti

No 685, 2007 Meeting Papers from Society for Economic Dynamics

Abstract: We test the implications of the theory in the presence of political shocks affecting the taste for public consumption. Government debt is mean reverting and left-wing governments are predicted to accumulate less debt. Data from the US and from a panel of 21 OECD countries confirm the main predictions of the theory.

Date: 2007
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Related works:
Journal Article: Rotten Parents and Disciplined Children: A Politico‐Economic Theory of Public Expenditure and Debt (2012)
Working Paper: Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt (2012)
Working Paper: Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt (2009)
Working Paper: Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt (2007)
Working Paper: Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt (2007)
Working Paper: Rotten parents and disciplined children: a politico-economic theory of public expenditure and debt (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed007:685

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