Empirical Tests of Ricardian Equivalence

Charles Bram Cadsby () and Murray Frank ()

Working Papers from Queen's University, Department of Economics

Abstract: The results of a series of experiments testing Ricardian equivalence are reported. The experimental design is based on an overlapping generations model similar to Barro (1974). Expansionary and contractionary fiscal policies are examined. When theory predicts a positive bequest, decision close to those predicted by Ricardian equivalence are observed after allowing for learning. The imposition of a binding non-negativity constraint on bequests produces the predicted Keynesian behavior. The cost of deviation from the theoretical equilibrium seem to be an important determinant of the variability of the observed decisions around the theoretical equilibrium.

Date: Written

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: experimental tests of ricardian equivalence
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:qed:wpaper:738

Access Statistics for this paper

More papers in Working Papers from Queen's University, Department of Economics
Contact information at EDIRC.
Series data maintained by Mark Babcock ().