Template-Type: ReDIF-Paper 1.0
Author-Name:Konstantin Yanovskiy
Author-Name-First: Konstantin   
Author-Name-Last: Yanovskiy 
Author-Workplace-Name: Gaidar Institute for Economic Policy
Author-Name:Sergey Zhavoronkov
Author-Name-First: Sergey    
Author-Name-Last: Zhavoronkov 
Author-Workplace-Name: Gaidar Institute for Economic Policy
Author-Name:Dmitry Shestakov 
Author-Name-First: Dmitry      
Author-Name-Last: Shestakov 
Author-Workplace-Name: Gaidar Institute for Economic Policy
Title:  Democracy of "Taxation-Redistribution" and Peacetime Budget Deficit
Abstract: The link between an introduction of the universal suffrage and the growth of government spending has been established in some literature (Meltzer, Richard, 1981, Aidt et al., 2006, Funk and Guthmann, 2006). In this article we try to identify a more detailed mechanism behind that link. So, we addressed to the conflict of interest of bureaucrats, and of the state subsidy beneficiaries. Historically the growth of government spending might be traced to the emergence of mainstream left parties, which openly stood in favor of the nanny state and government help from the cradle to the grave[1] as a priority over the provision of pure public goods. Finally we check the hypothesis that the growth of government care correlates with the chronic illnesses of the modern state finance like budget deficit, state debt and inflation.
Length:  20 pages
Creation-Date: 2013
Revision-Date:   2013
Classification-JEL: D72, D73, H62, N40
Keywords: Universal Suffrage; Left parties; Budget Deficit; Conflict of Interest.
File-URL: https://www.iep.ru/files/RePEc/gai/wpaper/0078Yanovskiy.pdf
File-Format: Application/pdf
File-Function: Revised version, 2013
Handle: RePEc:gai:wpaper:0078