The Balanced Budget: An Economic Analysis

15 Pages Posted: 12 Jun 2011

Date Written: May 19, 2011


The public economic policy debate often touches on the issue of the federal budget deficit. Proposals for legal budget-balancing measures often make the stage. But the proponents often fail to account for the economic policy consequences of their proposals. A constitutional amendment to mandate a balanced budget could easily become a vehicle for tax increases, even if states, run by fiscal conservatives, are given a say in the federal budget process.

Keywords: balanced budget, fiscal policy, budget deficit

JEL Classification: E60, E61, E62

Suggested Citation

Larson, Sven R., The Balanced Budget: An Economic Analysis (May 19, 2011). Available at SSRN: or

Sven R. Larson (Contact Author)

Independent ( email )

No Address Available
United States

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