An incentive to ensure that bad times don’t happen, I’d say. Or that they run a decent surplus during good times.
They could borrow against future dividend income in order to smooth consumption or stimulate demand (depends on whether you think a local authority in an open economy trying a Keynsian stimulus is a good idea or not.
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timeasmymeasure
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Date: 2013-03-08 12:51 pm (UTC)They could borrow against future dividend income in order to smooth consumption or stimulate demand (depends on whether you think a local authority in an open economy trying a Keynsian stimulus is a good idea or not.