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Rheinische Friedrich-Wilhelms-Universität Bonn >
Bonn Graduate School of Economics (BGSE), Universität Bonn >
Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/22969
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Crivelli, Ernesto | | en_US |
| dc.date.accessioned | | 2009-01-29T15:11:29Z | | - |
| dc.date.available | | 2009-01-29T15:11:29Z | | - |
| dc.date.issued | | 2006 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/22969 | | - |
| dc.description.abstract | | Local governments have borrowed largely from the banking system to finance their deficits instead of responding to the rigors of bond markets. This paper analizes how sub-national governments optimally reallocate the provision of public goods and decide on borrowing, in a model where the banking system faces a soft budget constraint. In contrast with recent literature, sub-national governments allocate a higher (lower) than optimal amount of resources to consumption public goods (infrastructure investment) and overborrow if they expect the banking system to be bailed out. Controls on sub-national borrowing like the golden rule seem to be inefficient to avoid excesive indebtedness at state level. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | | | en_US |
| dc.relation.ispartofseries | | Bonn econ discussion papers 2006,24 | | en_US |
| dc.subject.jel | | R5 | | en_US |
| dc.subject.jel | | H7 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Fiscal federalism | | en_US |
| dc.subject.keyword | | soft budget constraints | | en_US |
| dc.subject.keyword | | local public investment | | en_US |
| dc.subject.keyword | | sub-national borrowing | | en_US |
| dc.title | | Sub-National Optimal Budget Allocation and Borrowing under Soft Budget Constraint | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 525236260 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | - |
| Appears in Collections: | | Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn
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