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Precommitted government spending and partisan politics
- Publication Year :
- 2011
- Publisher :
- Munich: Center for Economic Studies and ifo Institute (CESifo), 2011.
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Abstract
- This paper analyzes government commitments to ongoing spending programs that require future outlays. Spending commitments are important for understanding partisan politics because they constrain future governments. In a model with one government good, a 'stubborn liberal' policy maker can use precommitted spending to prevent a later conservative government from imposing decisive spending cuts. In a model where parties differ about spending priorities, reelection uncertainty creates a permanent bias towards higher government spending and higher taxes.
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.od......1687..a60a21779746daaa25cbba11d93b4301