A Behavioural Model of Government Budget Deficits

Ben C J Van Velthoven and Frans van Winden ()

Public Finance = Finances publiques, 1990, vol. 45, issue 1, 128-61

Abstract: This paper stresses the need for a behavioral-theoretic explanation of budget deficits. From that perspective, the existing literature is evaluated. Using Frans A. A. M. Van Winden's interest function approach, a formal model is developed in which government expenditure, the tax rate, and the budget deficit are simultaneously determined. Using this model, the paper analyzes the impact on budget deficits of the preferences of different social groups; the social power configuration; the time horizon of the state; the interest rate; and the time pattern of national income.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pfi:pubfin:v:45:y:1990:i:1:p:128-61

Access Statistics for this article

More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().