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Marco Battaglini, Stephen Coate, The Political Economy of Fiscal Policy, Journal of the European Economic Association, Volume 6, Issue 2-3, 1 May 2008, Pages 367–380, https://doi.org/10.1162/JEEA.2008.6.2-3.367
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Abstract
We describe a theory of the collective choice of fiscal policy in dynamic economies that are subject to aggregate shocks. The theory incorporates realistically complex policy spaces, rational forward-looking agents, and a rich political decision process. We argue that it provides a tractable framework to study a variety of important questions in macroeconomics and public finance.
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© 2008 by the European Economic Association
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