The macroeconomic impacts of government debt: An empirical analysis of the 1980s and 1990s

Mark Wheeler

Atlantic Economic Journal, 1999, vol. 27, issue 3, 273-284

Abstract: This study examines the macroeconomic impacts of government debt. Unlike previous studies, the current study restricts the estimation period to the 1980s and 1990s. The analysis is conducted using variance decompositions and impulse response functions derived from a vector autoregressive model. The results presented here support an extreme form of the Ricardian equivalence hypothesis. In this view, wealth falls as government debt rises. Because wealth falls as government debt rises, an increase in government debt leads to decreases in interest rates, output, and the price level. Copyright International Atlantic Economic Society 1999

Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1007/BF02299578 (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: https://EconPapers.repec.org/RePEc:kap:atlecj:v:27:y:1999:i:3:p:273-284

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2

DOI: 10.1007/BF02299578

Access Statistics for this article

Atlantic Economic Journal is currently edited by Kathleen S. Virgo

More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().