Does Ricardian Equivalence Hold When Expectations Are Not Rational?
نویسندگان
چکیده
منابع مشابه
Does Ricardian Equivalence hold when expectations are not rational?
This paper considers the Ricardian Equivalence proposition when expectations are not rational and are instead formed using adaptive learning rules. We show that Ricardian Equivalence continues to hold provided suitable additional conditions on learning dynamics are satisfied. However, new cases of failure can also emerge under learning. In particular, for Ricardian Equivalence to obtain, agents...
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ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2012
ISSN: 0022-2879
DOI: 10.1111/j.1538-4616.2012.00531.x