Are Pakistani Consumers Ricardian?

Muhammad Waqas () and Masood Awan ()

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this study is to check the Ricardian Equivalence Hypothesis in case of Pakistan by using annual data for the period of 1973-2009. Government expenditure, private consumption expenditure, tax revenue, government debt, disposable income, government budget deficit and wealth are the variables which are used for analysis. Cointegration results show a long run relationship among the variables. Results of structural form consumption function invalidate the Ricardian Equivalence Hypothesis in case of Pakistan. These results draw attention towards the significance of fiscal policies in boosting private consumption and controlling budget deficits, which are the prime goals of stabilization policies in Pakistan.

Keywords: Fiscal policy; Ricardian Equivalence; Government debt; Pakistan (search for similar items in EconPapers)
JEL-codes: E62 H6 K34 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Economics and Business Review 2011.13(2011): pp. 161-177

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/35375/1/MPRA_paper_35375.pdf original version (application/pdf)

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:pra:mprapa:35375

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().