MET Seminar - Alessia Russo (Padova)
| Dates: | 29 November 2023 |
|---|
| Times: | 17:00 - 18:00 |
|---|
| What is it: | Seminar |
|---|
| Organiser: | School of Social Sciences |
|---|
| Who is it for: | University staff, Current University students |
|---|
|
Title: PublicDebt and Growth in a Democracy with Partisan Politics (joint with SergioCappellini and Francesco Lancia)
Abstract: Westudy the strategic relationship between public productive investments and porkbarrel spending, along with public debt, in the presence of partisan conflicts.Using a probabilistic voting framework without future policy commitments, wefind that partisan conflicts lead to divergent policy platforms and prevent theeconomy from converging to an immiseration regime. In the Markov-perfectpolitico-economic equilibrium, the party biased towards more public investmentsdisplays less discipline than the party favoring pork barrel spending. Highergrowth generated by public investments increases the endogenous debt limit,leading to more indebtedness and reduced public spending in the long run. Ourfindings help explain the coexistence of rising debt and political cyclesobserved in democratic countries.
Manchester Economic Theory (MET) schedule: http://daviddelacretaz.net/seminars/
Speaker website: https://alessiarussoecon.weebly.com/
Travel and Contact Information
Find event
Boardroom 2.016
Arthur Lewis Building
Manchester
