The moral of public debt

Abstract

This paper deals with the moral dimension of the public debt and its theoretical
reference is constitutional economics. It is argued that the main reason to the existence of
any moral link between public debt and ethics is the transference of costs to future generations.
Firstly, the article explores James Buchanan’s public debt analysis. Secondly, is described
in the paper the neoclassical point of view about the matter. The main purpose here is
to establish, starting from the positive point of view and passing through- out a normative
one, the role of a deontological analysis of the debt burden. After this, I make the linkage
between institutions, incentives’ schemes and debt.

JEL Classification: H63; D72; D73.