Government Inside Information and Debt Signaling: Evidence from Consumer and Business Confidence.

Hirata, Sean C.


  • My research begins with a new theoretical model that applies the idea of debt signaling to the public sector. It suggests that due to constraints on the government's time in power, spending as much as possible in the current period is attractive as long as the government doesn't default in the future. Therefore, a strong projection of economic growth would lead to an increase in deficit spending i... read more
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