TY  - GEN
AB  - 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.
AU  - Krogstrup, Signe
AU  - Wyplosz, Charles
DA  - 2010
DO  - 10.1016/j.euroecorev.2009.06.010
DO  - doi
ID  - 292681
L1  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf
L1  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf?subformat=pdfa
L2  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf
L2  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf?subformat=pdfa
L4  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf
L4  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf?subformat=pdfa
LK  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf
LK  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf?subformat=pdfa
N2  - 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.
PY  - 2010
T1  - A common pool theory of supranational deficit ceilings
TI  - A common pool theory of supranational deficit ceilings
UR  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf
UR  - https://repository.graduateinstitute.ch/record/292681/files/EER_Wyplosz_2010.pdf?subformat=pdfa
Y1  - 2010
ER  -