November, 2016

Budgeting and Public Debt within a System of Cooperative Democracy

  • Richard Wagner

    Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics
  • Giuseppe Eusepi

read more

Find the full working paper at SSRN.

This paper is the penultimate draft of the fourth of six chapters of a book titled Public Debt: An Illusion of Democratic Political Economy. This essay establishes an analytical benchmark of a democratic system in which political outcomes reflect genuine consensus among the participants. This benchmark traces to Antonio de Viti de Marco’s construction of contrasting models of democratic action. The theory of a wholly cooperative democratic regime provides a benchmark against which to examine actual democratic processes and arrangements. In this respect, and looking ahead, de Viti recognized that democratic regimes were not passive reflectors of individual preference orderings because they entailed relationships of domination-and-subordination.