Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128033
Authors: 
Niepelt, Dirk
Year of Publication: 
2005
Series/Report no.: 
Working Paper, Study Center Gerzensee 05.04
Abstract: 
A balanced budget requirement does not only prevent fiscal policy makers from smoothing tax distortions but also affects their preferred choice of government spending. The paper analyzes the conditions under which groups opposed to government spending might want to implement a balanced budget requirement in order to induce the government to spend less. It shows that relaxing a balanced budget requirement need not be associated with higher government spending.
Subjects: 
Balanced budget
intra-generational conflict
government spending
JEL: 
E62
H62
Document Type: 
Working Paper

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