The public debt perception issue

Abstract

In the previous analysis the theoretical reasons underlying a wide definition of public debt were investigated and the analogy existing between bonds and unfunded obligations was stressed: in both cases the government borrows in the present with the promise of giving back the money plus the interest in the future. Thus, the role of both obligations as a means of financing government activities was not adequately explored. The following analysis is aimed at investigating this issue from the specific point of view of the individual’s perception of fiscal burden. More precisely, the purpose of this chapter is to include unfunded obligations in the framework of public choice analysis.