The impact of private finance on publicly funded health care systems depends on how the relationship between public and private finance is structured. This essay first reviews the experience in five nations that exemplify different ways of drawing the public/private boundary to address the particular questions raised by each model. This review is then used to interpret aggregate empirical analy...

The standard theory of tax smoothing says that the government runs a deficit to finance investment projects with a market rate of return and temporary high levels of public consumption. Taxes are used to finance permanent spending and losses on public investment. Deficit financing is used to offset some of the short-run costs of structural reforms. A prudent government deliberately downplays ex...

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The paper addresses how democracy can affect public finance and state capacity investment. We show that the effect of on policy take two forms: direct indirect. transpires when increasing leads to an increase in expenditure which results increased goods provision reduced political rent. indirect emerges a reduction investment and, subsequently, provision. Paradoxically, lower rents deteriorate ...