Demand for Government Spending: Do Our Beliefs About Public Debt Matter?

Stancea Andreea () and Ciocirlan Cecilia
Additional contact information
Stancea Andreea: National School of Political Science and Public Administration, Romania
Ciocirlan Cecilia: National University of Political Studies and Public Administration, Romania, Institute for World Economy, Romanian Academy

Studia Universitatis Babeș-Bolyai Oeconomica, 2023, vol. 68, issue 1, 1-20

Abstract: Macroeconomic expectations play a major role in predicting individual choices and behavior. This paper examines the effects of public debt expectations and knowledge on demand for government spending measured by individual preferences. Using a unique survey dataset applied in Central and Eastern Europe, the results show that the most knowledgeable citizens tend to support the increase in public spending. Debt expectations also have a significant impact on public spending preferences: citizens who have negative debt expectations are less likely to support public spending increases. The results shed light on the importance of economic knowledge and information provision for shaping public attitudes about future taxation.

Keywords: public spending preferences; public debt expectations; economic knowledge; CESEE; public finance (search for similar items in EconPapers)
JEL-codes: D14 D91 H31 H53 (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/subboec-2023-0001 (text/html)

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:vrs:subboe:v:68:y:2023:i:1:p:1-20:n:2

DOI: 10.2478/subboec-2023-0001

Access Statistics for this article

Studia Universitatis Babeș-Bolyai Oeconomica is currently edited by Dumitru Matis

More articles in Studia Universitatis Babeș-Bolyai Oeconomica from Sciendo
Bibliographic data for series maintained by Peter Golla ().