منابع مشابه
Matching grants and Ricardian Equivalence
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Robert Barro (1974) showed government debt has no real effects when generations are linked by altruistically motivated intergenerational transfers, a result now known widely as the Ricardian Equivalence Theorem. An important condition for debt neutrality is believed to be the absence of strategic interactions between members of different generations. I use a simple two-period, parent and child ...
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Several important empirical studies (for example, Altonji, Hayashi, and Kotlikoff, 1992, 1996, 1997) have found that households are not altruistically linked in a way consistent with the standard Ricardian model, as put forward by Barro (1974). We built a two-sided altruistic-linkage model in which private transfers are made in the presence of two types of shocks: an observable shock that is pu...
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I INTRODUCTION T he Ricardian Equivalence hypothesis states that economic agents perceive the future tax liabilities implicit in government debt issue and thus that increasing government expenditure partially crowds out private sector con sumption through its effects on perceived permanent income. Thus, Ricardian equivalence implies that not only does a contraction of government expendi ture ...
متن کاملDoes 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: International Economic Journal
سال: 1996
ISSN: 1016-8737,1743-517X
DOI: 10.1080/10168739600000002