The public debt and the Ricardian equivalence: Some critical remarks

Claudio Sardoni ()

Structural Change and Economic Dynamics, 2021, vol. 58, issue C, 153-160

Abstract: The paper criticizes the so-called Ricardian Equivalence (RE) and its implications for the analysis of the problem of the public debt. The RE hinges on a view of the economic role of the state as merely parasitic and on an unwarranted extension of the micro-economic analysis of debts to the macro-economic level. The RE is at the heart of the mainstream approach to the public debt and the policies that indicate the running of primary surpluses as the only way to stabilize its ratio to GDP.

Keywords: Ricardian Equivalence; Public debt; Economic growth (search for similar items in EconPapers)
JEL-codes: E21 E60 E62 H30 H54 H60 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:58:y:2021:i:c:p:153-160

DOI: 10.1016/j.strueco.2021.05.006

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