Construct · 1 fields · 1 citations

strategic debt hypothesis: a standalone construct

One name. One construct. A landmark on the map.

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Public choice

the idea that an incumbent expecting to lose office runs up debt to constrain the spending choices of a successor with different preferences.

In public choice, strategic debt hypothesis refers to the idea that an incumbent expecting to lose office runs up debt to constrain the spending choices of a successor with different preferences. This meaning comes from Persson (1989) in The Quarterly Journal of Economics.[1]

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Nearby constructs

debt3 fields · 3 citationsjingle · one word, three carriers hypothesis2 fields · 2 citationsjingle · one word, two constructs office2 fields · 3 citationsjingle · one word, two constructs

References

Persson, T., & Svensson, L. E. O. (1989). Why a Stubborn Conservative would Run a Deficit: Policy with Time- Inconsistent Preferences. The Quarterly Journal of Economics, 104(2), 325. https://doi.org/10.2307/2937850

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