paper
A Theory of Fiscal Responsibility and Irresponsibility
Halac, M., & Yared, P. (2025). Journal of Political Economy
1 read
readers, most recent
Note: We propose a political economy mechanism that explains the presence of fiscal regimes punctuated by crisis periods. Our model focuses on the interaction between successive deficit-biased governments subject to independently and identically distributed fiscal shocks. We show that the economy.....