Fochmann, Martin; Sadrieh, Abdolkarim; Weimann, Joachim - CESifo - 2014
debt. Public debt is chosen by popular vote, pays for public goods, and is repaid with general taxes. With a single … generation, public debt is accumulated prudently, never leading to over-indebtedness. With multiple generations, public debt is …We use a controlled laboratory experiment with and without overlapping generations to study the emergence of public …