Can a diligent, wise and bona fide voter choose procyclical policies?
I am asking if there is any explanation.
In diligent and wise I mean people who appreciate the Ponzi scheme, want to balance their intertemporal consumption given an intertemporal CES consumption utility with an Elasticity of Substitution of 0.5 and equal weights(coefficients) who are risk averse and have a very low intertemporal discount. They are indiferent between 1 dolar today and 1.01 dollars next week.
And by Bona fide I mean not acting with any hidden motives, sneakily, shadily. No relations with politicians. Absolutely no rent-seeking.
