7. Dynamic political economy

Macroeconomics is scant on theories of government debt. Given this large recent public interest in government debt accumulation, there is a strong need for progress in this area.

Sustainable pension system

This subproject aims at understanding what – if anything – may sustain the pension systems and prevent governments from choosing ever-increasing government debt. One lead they will investigate is if fiscal policies may be complements to other policies: voters who know the future government must repay a large debt may strive to increase the tax base through educational subsidies and business-friendly policies.

Published July 7, 2014 1:07 PM - Last modified Apr. 30, 2020 9:54 AM