Assessing Ricardian equivalence

RICCIUTI, R. Assessing Ricardian equivalence. JOURNAL OF ECONOMIC SURVEYS. MALDEN: WILEY-BLACKWELL, 2003, vol. 17, No 1, p. 55-78. ISSN 0950-0804. Available from: https://dx.doi.org/10.1111/1467-6419.00188.

Basic information

Original name

Assessing Ricardian equivalence

Authors

RICCIUTI, R

Edition

JOURNAL OF ECONOMIC SURVEYS, MALDEN, WILEY-BLACKWELL, 2003, 0950-0804

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Other information

Language

English

Type of outcome

Článek v odborném periodiku

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

URL

Impact factor

Impact factor: 0.675

DOI

http://dx.doi.org/10.1111/1467-6419.00188

UT WoS

000180917800002

Keywords in English

fiscal policy; debt; taxes; government spending

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Abstract

V originále

This paper reviews the literature on Ricardian equivalence. This hypothesis may be interpreted as a generalization to the short and the long run of the theories that put no weight on the real effects of public policies on aggregate demand. We argue that Ricardian equivalence relies on both the permanent income hypothesis and the fulfillment of the intertemporal government budget constraint. The theoretical literature emphasizes several reasons for departures from this hypothesis. However, the empirical literature is inconclusive. When Ricardian equivalence is tested in a life-cycle framework the hypothesis is usually rejected, while when the empirical analysis is based on optimizing models, it is usually accepted.