Using Survey Data To Test for Ricardian Equivalence

Maarten Allers, Jakob de Haan and Flip De Kam
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Maarten Allers: University of Groningen
Flip De Kam: University of Groningen

Public Finance Review, 1998, vol. 26, issue 6, 565-582

Abstract: Drawing on nationwide and representative survey data for the Netherlands, this article tests, first, to what degree economic subjects are aware of the level of both government debt and deficits, and, second, examines whether fiscal policy relates to individual saving decisions. The results presented suggest that one of the central assumptions of the Ricardian equivalence hypothesis must be refuted: most individu als have little knowledge of the government's indebtedness. Furthermore, their saving behavior appears not to be influenced by the fiscal policy stance. The authors show that individual responses vary with age, education, income, and employment status, but not with having offspring.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:26:y:1998:i:6:p:565-582

DOI: 10.1177/109114219802600603

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