Economics at your fingertips  

Staatsverschuldung und Verschuldungsmentalität

Public Debt and Debt Mentality

Diana Dilla

MPRA Paper from University Library of Munich, Germany

Abstract: In search for determinants of public debt, traditional economic approaches use macroeconomic and public choice models. More recent research explains public debt by debt preferences of voters and politicians. When it comes to empirical testing, however, the latter approach often suffers from the lack of suitable proxies for debt preferences. The present paper finds a remedy by using private debt as a proxy for voters’ debt mentality. The empirical analysis employs a panel data set for the German Laender and reveals that both private debt and private over-indebtedness have a significantly positive impact on public debt.

Keywords: Public debt; debt preferences; private debt mentality; private debt; private overindebtedness (search for similar items in EconPapers)
JEL-codes: H62 H63 (search for similar items in EconPapers)
Date: 2017-05-29
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2020-09-16
Handle: RePEc:pra:mprapa:79432