Fiscal Policy Preferences with Tax, Spending and Borrowing Trade-offs
It is a common complaint about public attitudes towards fiscal policy that voters want something for nothing, or that they want "Scandinavian levels of spending and American levels of taxation". However, these results typically come from survey questions which make expressing these views entirely possible, rather than asking respondents to internalise the relevant trade-offs. Recent research has begun to move in this direction by building in trade-offs with taxes when asking about spending proposals, as well as considering the necessary tax or spending consequences of deficit reduction.