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.
Other formats:   BibTeX LaTeX RIS
Basic information
Original name Assessing Ricardian equivalence
Authors RICCIUTI, R.
Edition JOURNAL OF ECONOMIC SURVEYS, MALDEN, WILEY-BLACKWELL, 2003, 0950-0804.
Other information
Original language English
Type of outcome Article in a journal
Confidentiality degree is not subject to a state or trade secret
WWW 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
Changed by Changed by: doc. Ing. Jan Čapek, Ph.D., učo 40604. Changed: 14/1/2016 19:48.
Abstract
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.
PrintDisplayed: 28/5/2024 18:23