@article{Krogstrup:292681,
      recid = {292681},
      author = {Krogstrup, Signe and Wyplosz, Charles},
      title = {A common pool theory of supranational deficit ceilings},
      address = {2010},
      number = {ARTICLE},
      abstract = {The budget deficit bias is  modeled as the result of a  domestic common pool problem and of an international  externality. Deficits can be used to finance both  unproductive and productive public spending. An optimally  set supranational deficit ceiling is examined and welfare  is compared to the unconstrained outcome and to the case of  nationally set deficit ceilings.The supranational deficit  ceiling is found to be welfare improving relative to  similar national arrangements, but does not fully eliminate  the deficit bias unless combined with a domestic fiscal  institution allowing for precommitment to productive public  spending.},
      url = {http://repository.graduateinstitute.ch/record/292681},
      doi = {https://doi.org/10.1016/j.euroecorev.2009.06.010},
}