The Political Economy of Fiscal Decisions

The Strategic Role of Public Debt

  • Jessica de Wolff

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages i-xv
  2. Jessica de Wolff
    Pages 1-6
  3. Jessica de Wolff
    Pages 7-9
  4. Jessica de Wolff
    Pages 49-66
  5. Jessica de Wolff
    Pages 67-87
  6. Jessica de Wolff
    Pages 89-107
  7. Jessica de Wolff
    Pages 109-113
  8. Back Matter
    Pages 115-151

About this book


A ruling party decides each of two periods on the level of public goods which it finances by means of taxation and internal debt. The debt has to be honoured by the government of the second period. Between the two periods elections take place, which may change the ruling party.
The book analyzes the fiscal decision of the first government which aims to maximize the long run utility of its representative voter. Conditions under which the government uses debt strategically in order to stay in power are identified. It is also shown how the fiscal decisions hinge on the populations' political structure and its beliefs about the future government.


Fiscal Policy Fiskalpolitik Politische Ökonomie Public Debt Staatsverschuldung political economy

Authors and affiliations

  • Jessica de Wolff
    • 1
  1. 1.Economics Department Sekr. WW4Technical University of BerlinBerlinGermany

Bibliographic information

  • DOI
  • Copyright Information Physica-Verlag Heidelberg 1998
  • Publisher Name Physica, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-1130-8
  • Online ISBN 978-3-642-58993-5
  • Series Print ISSN 1431-1933
  • Buy this book on publisher's site