Strategic use of fiscal deficit: An experimental study

Authors
Publication date 2008
Number of pages 6
Publisher onbekend: Afdeling Algemene Economie
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract I extend Sutter’s (2003) experimental study on the strategic use of fiscal deficit by adding a panel structure to his design. The results strengthen Sutter’s conclusions. Panel estimates are strong and with the expected signs. Generally, the results support the political-economic theory applied to fiscal deficits. In particular, the impact of polarization and reelection probability on deficit levels is as predicted.
Document type Working paper
Published at
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