Taxing Deficits to Restrain Government Spending

In a dynamic model of fiscal policy, social polarization provokes a deficit bias. Policy advisors have recently proposed that governments running a deficit should be forced to generate additional tax revenue. We show that this deficit taxation reduces each group's spending bias today because it...

Full description

Saved in:
Bibliographic details
Volume: 11
Main Author: Staehler, Nikolai
Format: Journal Article
Language: English
Zielgruppe: Academic
Place of publication: Malden, USA Blackwell Publishing Inc 01.02.2009
Association for Public Economic Theory
Wiley Subscription Services, Inc
Blackwell Publishing Ltd
published in: Journal of public economic theory Vol. 11; no. 1; pp. 159 - 176
Edition: Received September 11, 2007; Accepted September 22, 2008.
Data of publication: 2009-02
ISSN: 1097-3923
EISSN: 1467-9779
Discipline: Economics
Bibliography: I would like to thank Ulrich Burgtorf, Johannes Clemens, Jürgen Hamker, Jana Kremer, Bernhard Manzke, Leonzio Rizzo, Dan Stegarescu, Karsten Wendorff, Andrea Zaghini, participants of the 2008 Annual Meeting of the Association for Public Economic Theory and two anonymous referees for their helpful comments. I am especially indebted to Guntram Wolff for various discussions on the topic. Special thanks also to Toni Ahnert and Astrid Lemmer. The opinions expressed in this paper do not necessarily reflect the opinions of the Deutsche Bundesbank or of its staff. Any errors in this paper are the author's alone.
Nikolai Stähler, Deutsche Bundesbank, Department of Economics, Public Finance Division, Wilhelm‐Epstein‐Str. 14, 60431 Frankfurt a.M., Germany
Series: Journal of Public Economic Theory
Online Access: Fulltext
Database: Istex
Web of Knowledge
Social Sciences Citation Index
Web of Science
Web of Science - Social Sciences Citation Index - 2009
Academic OneFile (A&I only)
ProQuest One Business
ProQuest One Business (Alumni)
Database information Databases - DBIS