EconPapers    
Economics at your fingertips  
 

Voting on the Budget Deficit

Alberto Alesina and Guido Tabellini

No 2759, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper analyzes a model in which different rational individuals vote over the composition and time profile of public spending. Potential disagreement between current and future majorities generates instability in the social choice function that aggregates individual preferences. In equilibrium a majority of the voters may favor a budget deficit. The size of the deficit under majority rule tends to be larger the greater is the polarization between current and potential future majorities. The paper also shows that the ex-ante efficient equilibrium of this model involves a balanced budget. A balanced budget amendment, however, is not durable under majority rule.

Date: 1988-11
Note: ME
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published as American Economic Review, vol. 80, no. 1, pp. 37-49, March 1990.

Downloads: (external link)
http://www.nber.org/papers/w2759.pdf (application/pdf)

Related works:
Journal Article: Voting on the Budget Deficit (1990) Downloads
Working Paper: Voting on the Budget Deficit (1990) Downloads
Working Paper: Voting on the Budget Deficit (1988) Downloads
Working Paper: Voting on the Budget Deficit (1988) 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:nbr:nberwo:2759

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w2759

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:nbr:nberwo:2759