Seminar Papers, Institute for International Economic Studies, Stockholm University
Intra-Generational Conflict: The Role of Balanced Budget Rules
Abstract: A balanced budget requirement directly affects the
intra-generational wealth distribution and influences the level of
government spending. Both effects give rise to distributive conflicts that
can explain why some groups support balanced budget rules while other
groups in the same generation oppose them. Simulations suggest that such
distributive conflicts are prevalent. I argue that intra-generational
distributive conflicts offer a more convincing explanation for the observed
partial support for balanced budget rules than alternative theories based
on inter-generational conflict or efficiency considerations.
Keywords: balanced budget rules; intra-generational conflict; government spending; wealth distribution; (follow links to similar papers)
JEL-Codes: E62; H62; (follow links to similar papers)
26 pages, July 8, 2003
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- This paper is forthcoming as:
Niepelt, Dirk, 'Starving the Beast? Intra-Generational Conflict and Balanced Budget Rules', European Economic Review.
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