Resource title

The Role of Beliefs for the Sustainability of the Fiscal Constitution

Resource image

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Resource description

Why does the government not defect from the constitution? This article focuses on the dynamic restraints the government faces under the rule of law: violations against unconstitutional laws are not punished under the constitution. If a violating government cannot commit itself never to reinstall the constitution enforcing an unconstitutional law becomes difficult. Citizens? expectations to go unpunished when not complying may be self-fulfilling. Deriving the equilibrium of a global game we show that this mechanism is effectively deterring a government from defecting from a constitutionally permissible tax rate.

Resource author

Karl Justus Bernhard Neumärker, Gerald Pech

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23130

Resource license

Adapt according to the presented license agreement and reference the original author.