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Fiscal Stability of High-Debt Nations under Volatile Economic Conditions
National debt deficit fiscal policy
2015/7/20
Using a recursive empirical model of the real interest rate, GDP growth and the primary government deficit in the United States, I solve for the ergodic distribution of the debt/GDP ratio. If such a d...
Transactions Costs and Coalition Stability under Majority Rule
Transactions Costs Coalition Stability Majority Rule
2014/6/25
In this paper we examine the discrepancy between theoretical predictions of unstable majorities and observed stability. Minimum winning coalitions divide program benefits among their members, creating...