Tabellini, GuidoAlesina, Alberto2010-11-091990Tabellini, Guido, and Alberto Alesina, 1990. Voting on the budget deficit. American Economic Review 80(1): 37-49.0002-8282http://nrs.harvard.edu/urn-3:HUL.InstRepos:4553030This paper analyzes a model in which a group of rational individuals votes over the composition and time profile of public spending. All voters agree that a balanced budget is ex ante optimal. However, if there is disagreement between current and future majorities, a balanced budget is not a political equilibrium under majority rule. Under certain conditions a majority of the voters favors a budget deficit, and the equilibrium deficit is larger the greater is the polarization among voters.en-USJournal Article2010-11-0910.3386/w2759