by Says The Economist. The authors argue that falling state capacity, incompetence, corruption, and transfer/entitlement spending, which crowds out public investment and services, are to blame. Update: Related, in VoxEU, Martin Larch and Wouter van der Wielen argue that [g]overnments lamenting a stifling effect of fiscal rules on public investment are often those that have a poor compliance record and, as a result, high debt. They tend to deviate from rules not to increase public investment but to raise other expenditure items.
Topics:
Dirk Niepelt considers the following as important: Entitlement, Fiscal policy, Notes, pension, Public investment, State capacity, Transfer, United States
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Says The Economist. The authors argue that falling state capacity, incompetence, corruption, and transfer/entitlement spending, which crowds out public investment and services, are to blame.
Update: Related, in VoxEU, Martin Larch and Wouter van der Wielen argue that
[g]overnments lamenting a stifling effect of fiscal rules on public investment are often those that have a poor compliance record and, as a result, high debt. They tend to deviate from rules not to increase public investment but to raise other expenditure items.
