Prazmowski, Peter - In: Empirical Economics 46 (2014) 1, pp. 109-125
This paper tests the Ricardian equivalence hypothesis in the context of the Dominican Republic (DR). The results …. Interestingly, if the government uses taxes to cover a budget deficit, the effect is neutral and consistent with Ricardian … equivalence. The paper argues that fiscal distortions are in part responsible for these multipliers. Distortions are estimated to …