Towards A Behavioural-Theoretic Analysis of Budget Deficits

  • Ben C. J. van Velthoven
Part of the Studies in Contemporary Economics book series (CONTEMPORARY)


For quite some time now public sectors in Western countries have been running budget deficits (cf. Saunders and Klau (1985)). The economic literature on these budget deficits and their financing is extensive. It is discussed whether government debt represents a burden or net wealth, and whether the so-called Ricardian equivalence theorem between debt and tax financing holds; the macroeconomic analysis of the consequences of budget deficits has been given a new impulse through the explicit modelling of the government budget restraint since Christ (1967); all kinds of budget norms have been presented and defended. Rather rare, however, are the studies in which a positive analysis of the economic and political causes of the occurrence of budget deficits is given2). We will briefly survey the latter approaches.


Time Preference Public Debt Budget Deficit Budget Balance Capital Owner 
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Copyright information

© Springer 1989

Authors and Affiliations

  • Ben C. J. van Velthoven
    • 1
  1. 1.Department of Economics, Faculty of LawLeiden UniversityLeidenThe Netherlands

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