<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Macroeconomic expectations play a major role in predicting individual choices and behavior. This paper examines the effects of public debt expectations and knowledge on demand for government spending measured by individual preferences. Using a unique survey dataset applied in Central and Eastern Europe, the results show that the most knowledgeable citizens tend to support the increase in public spending. Debt expectations also have a significant impact on public spending preferences: citizens who have negative debt expectations are less likely to support public spending increases. The results shed light on the importance of economic knowledge and information provision for shaping public attitudes about future taxation.</p>
</abstract>

Macroeconomic expectations play a major role in predicting individual choices and behavior. This paper examines the effects of public debt expectations and knowledge on demand for government spending measured by individual preferences. Using a unique survey dataset applied in Central and Eastern Europe, the results show that the most knowledgeable citizens tend to support the increase in public spending. Debt expectations also have a significant impact on public spending preferences: citizens who have negative debt expectations are less likely to support public spending increases. The results shed light on the importance of economic knowledge and information provision for shaping public attitudes about future taxation.

Demand for Government Spending: Do Our Beliefs About Public Debt Matter?

National University of Political Studies and Public Administration

Studia Universitatis Babes-Bolyai Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Demand for Government Spending: Do Our Beliefs About Public Debt Matter?"}

Macroeconomic expectations play a major role in predicting individual choices and behavior. This paper examines the effects of public debt expectations and...

Demand for Government Spending: Do Our Beliefs About Public Debt Matter?

Published Online: May 08, 2023

Page range: 1 - 20

DOI: https://doi.org/10.2478/subboec-2023-0001

Keywords
public spending preferences, public debt expectations, economic knowledge, CESEE, public finance

© 2023 Andreea Stancea et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Demand for Government Spending: Do Our Beliefs About Public Debt Matter?

Published Online: May 08, 2023

Page range: 1 - 20

DOI: https://doi.org/10.2478/subboec-2023-0001

Keywordspublic spending preferences, public debt expectations, economic knowledge, CESEE, public finance

© 2023 Andreea Stancea et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
public spending preferences, public debt expectations, economic knowledge, CESEE, public finance