RICARDIAN EQUIVALENCE: FURTHER EVIDENCE

Atreya Chakraborty () and Abdikarim M. Farah

International Economic Journal, 1996, vol. 10, issue 3, pages 19-31

Abstract: The Ricardian Hypothesis states that for a given level of government expenditure, aggregate demand is neutral to changes in the debt-to-tax ratio. Many economists argue that the private and government sectors have different planning horizons which will lead to deviations from Ricardian equivalence. In this paper, by using a model that nests both Ricardian equivalence and an alternative hypothesis, we empirically investigate whether the private sector has a shorter planning horizon than the government sector. The evidence presented in this study suggests that there is no difference between the planning horizons of the private and government sectors. [E62]

Date: 1996
View list of references

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?tar ... &id=H23M705650K71236 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:intecj:v:10:y:1996:i:3:p:19-31

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

International Economic Journal is edited by Jaymin Lee

More articles in International Economic Journal from Korean International Economic Association
Series data maintained by Christopher F. Baum ().