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Working paper
Mandatory versus Discretionary Spending: The Status Quo Effect
In: American economic review, Band 104, Heft 10, S. 2941-2974
ISSN: 1944-7981
Do mandatory spending programs such as Medicare improve efficiency? We analyze a model with two parties allocating a fixed budget to a public good and private transfers each period over an infinite horizon. We compare two institutions that differ in whether public good spending is discretionary or mandatory. We model mandatory spending as an endogenous status quo since it is enacted by law and remains in effect until changed. Mandatory programs result in higher public good spending; furthermore, they ex ante Pareto dominate discretionary programs when parties are patient, persistence of power is low, and polarization is low. (JEL C78, E62, H41, H61)
Collective Choice in Dynamic Public Good Provision
In: American Economic Journal: Microeconomics, Forthcoming
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Working paper
Collective Choice in Dynamic Public Good Provision
In: NBER Working Paper No. w22772
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Durable Coalitions and Communication: Public Versus Private Negotiations
In: NBER Working Paper No. w22821
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Working paper
Collective Choice in Dynamic Public Good Provision
In: CEPR Discussion Paper No. DP11602
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Working paper
Rules with Discretion and Local Information
In: Stanford Graduate School of Business Research Paper No. 2117R
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Efficiency of Flexible Budgetary Institutions
In: NBER Working Paper No. w22457
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Working paper
Reform Fatigue
In: Stanford University Graduate School of Business Research Paper No. 3394
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Working paper