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“Fiscal Illusion Causes Fiscal Delusion – Please Be Careful!”

  • Paulo Mourao
Part of the Communications in Computer and Information Science book series (CCIS, volume 92)

Abstract

Although fiscal illusion was first articulated by Puviani (1903), it is a current issue, and its consequences are rather serious, as shown in this paper. Fiscal illusion enlarges the public sector but it can, by itself, be a considerable threat to the trust between the State and its citizens, ultimately promoting serious instability in economic cycles and in democratic institutions.

Keywords

Fiscal Illusion Democratic Institutions Economic cycles 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Paulo Mourao
    • 1
  1. 1.Department of Economics, School of Economics and ManagementUniversity of MinhoGualtarPortugal

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