Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/324758 
Erscheinungsjahr: 
2025
Schriftenreihe/Nr.: 
ECONtribute Discussion Paper No. 368
Verlag: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Zusammenfassung: 
Attitudes toward fiscal policy differ: fiscal conservatism and fiscal liberalism vary in their willingness to tolerate budget deficits. We challenge the view that such attitudes reflect national preferences. Instead, we offer an economic explanation based on a two-country Heterogeneous Agent New Keynesian model, bringing its implicit political economy dimension to the forefront. We compute the welfare implications of alternative fiscal policies at the household level to assess the conditions under which a policy commands majority support. Whether the majority supports fiscal conservatism or liberalism depends on a country's debt level, its wealth distribution, and the nature of the economic shock.
Schlagwörter: 
HANK
Two-country model
Political Economy
Government debt
Fiscal policy
household heterogeneity
JEL: 
E32
H63
F45
Dokumentart: 
Working Paper

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