Political Discipline and the Dynamic Consistency of Policy
UC Irvine Working Paper 97-98-01
Posted: 13 Jan 1998
Date Written: 1997
Positive analyses of the credibility constraint in policy often neglect the fact that political incentive constraints are also relevant in understanding observed policies. With a focus on government tax and spending policies, this paper identifies an important and positive role for political constraints given that the credibility constraint is binding.
JEL Classification: H29, H5
Suggested Citation: Suggested Citation