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This chapter discusses the background and significance of the study, and introduces the main subjects and basic concepts of the book, such as the peasant economy and governmental governance. The author presents an overview of the book, the research method used, and conclusion, and indicates the innovation and limitation of the study.
Giuseppe Eusepi and Richard E. Wagner
Antonio de Viti de Marco, accepted David Ricardo’s proposition that an extraordinary tax and a public loan are equivalent. All the same, de Viti’s theory of public debt diverged sharply from Ricardo’s. Ricardo thought effectively in representative agent terms; De Viti did not, and thought instead of macro variables as emerging out of interaction among individuals. Ricardo’s macro framework entailed the self-extinction of public debt due to its representative agent quality. In contrast, de Viti’s micro framework explained that self-extinction depended on the operating properties of the political system in which public debt was generated. Within the theoretical extremum of a system of cooperative democracy, self-extinction was a likely property. Ordinary democratic systems, however, featured continuing competition among elites striving for power. This competition enabled politically dominant groups to pass cost onto others in society, bringing about a de facto form of debt default and not self-extinction.