
handle: 11565/3997340
Abstract This chapter critically reviews the literature which explains why and under which circumstances governments accumulate more debt than it would be consistent with optimal fiscal policy. We also discuss numerical rules or institutional designs which might lead to a moderation of these distortions.
POLITICAL ECONOMY, OPTIMAL TAXATION, BUDGET RULES, GOVERNMENT DEBT
POLITICAL ECONOMY, OPTIMAL TAXATION, BUDGET RULES, GOVERNMENT DEBT
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