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• W2032052323 abstract "Why do governments issue large amounts of debt? In what sense and for whom is such a policy optimal? We show that twisting the optimal taxation paradigm produces very reasonable predictions for debt and real interest rates. Adding an extra dimension of uncertainty about the political planning horizon gives rise to a positive and very plausible government debt-to-GDP ratio of about 55 percent in a model that otherwise predicts negative government debt. We quantify the impact of political uncertainty on steady state and business cycle dynamics. We illustrate how populist tax cuts can cause business cycle fluctuations." @default.
• W2032052323 created "2016-06-24" @default.
• W2032052323 creator A5074184014 @default.
• W2032052323 creator A5075184776 @default.
• W2032052323 date "2007-03-01" @default.
• W2032052323 modified "2023-09-28" @default.
• W2032052323 title "Politically Optimal Fiscal Policy" @default.
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• W2032052323 hasPublicationYear "2007" @default.
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