The Ricardian equivalence: A theoretical curiosity? Some indications for the Venezuelan case (1950-2010)
This paper tries to extract certain indications about the validity of the ricardian equivalence as an approximation of the real performance of the Venezuelan economy based on the close relationship with the permanent income hypothesis. Using data for the period 1950-2010 and Koyck rationalized model (1954), specifically, the model of adaptive expectations (Greene, 1999) and some variants, several regression models were estimated. Empirical evidence suggests that the permanent income hypothesis does not seem to be a good approximation for consumption in Venezuela. Finally, it is very likely that the thesis of the ricardian equivalence is not a good approximation for the real behavior of the economy.
Year of publication: |
2013
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Authors: | Sulbarán, Bladimir David Pozo |
Published in: |
Economía. - Instituto de Investigaciones Económicas y Sociales, ISSN 1315-2467. - Vol. 38.2013, 35, p. 101-125
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Publisher: |
Instituto de Investigaciones Económicas y Sociales |
Subject: | Ricardian equivalence | permanent income hypothesis | Koyck Model |
Saved in:
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