Lockwood, Ben and Philippopoulos, Apostolis and Snell, Andy (1994) Fiscal Policy, Public Debt Stabilization and Politics: Theory and Evidence from the US and UK. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.
Lockwood, Ben and Philippopoulos, Apostolis and Snell, Andy (1994) Fiscal Policy, Public Debt Stabilization and Politics: Theory and Evidence from the US and UK. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.
Lockwood, Ben and Philippopoulos, Apostolis and Snell, Andy (1994) Fiscal Policy, Public Debt Stabilization and Politics: Theory and Evidence from the US and UK. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.
Abstract
This paper presents a two-party model of fiscal and debt policy which; (i) explicitly models the partisan, stabilisation, and (to some extent) survival motives of politicians; (ii) has predictions that are largely consistent with existing empirical findings about partisan and electoral effects in government expenditure, tax revenue, and debt; (iii) yields new predictions about how the feedback of fiscal policy on lagged debt may depend on partisan and electoral effects. These new predictions are not rejected by a test of the model on US and UK data.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences > Economics, Department of |
| Depositing User: | Jim Jamieson |
| Date Deposited: | 01 Sep 2014 11:27 |
| Last Modified: | 28 Jan 2016 12:30 |
| URI: | http://repository.essex.ac.uk/id/eprint/10029 |