Ricardian equivalence for sub-national states

Joe Stone and Jo Anna Gray ()
Additional contact information
Jo Anna Gray: University of Oregon

Economics Bulletin, 2006, vol. 5, issue 1, 1-12

Abstract: The authors test Ricardian equivalence within an endogenous growth model for U.S. states, which have high rates of migration relative to most countries. Results are consistent with both Ricardian equivalence and endogenous growth, despite the relative ease of migration. Increases in productive government expenditures increase long-run real growth by the same amount, for example, whether financed by taxes or bonds. State rules limiting the use of bond financing may play a role in supporting Ricardian equivalence. The study provides the first explicit test of Ricardian equivalence for sub-national states in the context of an endogenous growth model.

Keywords: endogenous; growth (search for similar items in EconPapers)
JEL-codes: E0 E6 (search for similar items in EconPapers)
Date: 2006-01-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2006/Volume5/EB-05E00011A.pdf (application/pdf)

Related works:
Working Paper: Ricardian Equivalence for Sub-national States (2005)
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:ebl:ecbull:eb-05e00011

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().