Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/23299
Authors: 
Siebel, Jens
Year of Publication: 
2005
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge / Universität-Gesamthochschule-Siegen, Fachbereich Wirtschaftswissenschaften 120
Abstract: 
In this paper Tabellini's and Alesina's (1990) median voter model for the explanation of budget deficits is modified by endogenizing the private sector. Debt finance is supplemented by taxing a private consumption which serves as an additional source of revenue for funding the public sector. The introduction of the private sector enables us to explain the budget balance as a result of political polarization with a left-wing party and a right-wing party having different preferences for the size of the public sector.
JEL: 
H61
H62
Document Type: 
Working Paper

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