English, Article, Journal or magazine article edition: The political economy of fiscal deficits and government production Gisle James Natvik

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Bookmark: http://trove.nla.gov.au/version/119970
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The political economy of fiscal deficits and government production
Author
  • Gisle James Natvik
Physical Description
  • preprint
Notes
  • This paper analyzes a framework where policymakers decide how to spend public resources on physical capital and labor in order to produce two public goods. Candidate policymakers disagree about which goods to produce, and may alternate in office due to elections. When capital and labor are complementary inputs to the production of public goods, the anticipation of political turnover reduces public savings in physical capital rather than finnancial assets. Political turnover renders the stock of physical capital for public production too low and ine¢ ciently combined with labor.
  • Political economics, budget deficits, public investment
  • RePEc:bno:worpap:2009_07
Language
  • English
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