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• W3125309675 abstract "This paper explores the logic of fiscal restraints in a political agency model with both moral hazard and adverse selection. The role of the political process is both to discipline incumbents who may act against the public interest and to sort in those politicians who are most likely act in voters' interests. We use the model to examine the optimality of inefficient taxation, limits on the size of government, increasing transparency, and yardstick competition. Some conclusions are surprising. For example, we show that some forms of fiscal restraint can only be desirable when incumbents are sufficiently likely to be benevolent." @default.
• W3125309675 created "2021-02-01" @default.
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• W3125309675 date "2007-04-01" @default.
• W3125309675 modified "2023-10-12" @default.
• W3125309675 title "Fiscal restraints and voter welfare" @default.
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• W3125309675 doi "https://doi.org/10.1016/j.jpubeco.2006.09.009" @default.
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