"Including both monetary gold and nonmonetary gold in a standard money-in-utility model, we establish a presumption that the price elasticity of money demand should be less than 1 under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United...

Using a simple stochastic growth model that nests both exogenous and endogenous growth, this paper shows that the growth rate should be mean stationary if growth is exogenous and difference stationary if growth is endogenous and any variable affecting investment is difference stationary....

This article shows theoretically and empirically that an aggregate Euler equation relates the growth rate of per capita consumption to the real interest rate, the ratio of private wealth plus asset income to consumption, and the ratio of social security wealth to consumption. Using the estimated...

This paper investigates whether government bonds are viewed as net wealth. If they are, the nominal interest rate in steady-state equilibrium should be an increasing function of the government debt and of government spending. Using forward interest rates realized during World War II, this paper...

Ricardian equivalence may be a good approximation even if all households have finite horizons, many households have short horizons, and an appreciable fraction of wage income is received by liquidity-constrained households. The approximation is likely to be better the more imperfect annuity...

Using data from sixty-six economies, the authors examine (1) the substitutability between private consumption and military and nonmilitary government spending and (2) the severity of liquidity constraints. Although the estimated substitutability parameters are fragile, private consumption and...

Using an overlapping-generations model in which households may have either finite or infinite horizons, the author derives the implications of each horizon for the steady-state real interest rate. He then formulates an econometric model of the steady-state real interest rate and devises tests...

The author develops a model that nests both Ricardian equivalence and an alternative non-Ricardian theory. The alternative is a stochastic variant of Blanchard's (1985) model and its empirical implications are derived. The author then tests Ricardian equivalence against this alternative using...

This paper investigates whether, in the steady state, the real interest rate is an increasing function of both government debt and government spending. Using data from the period between January 1981 and March 1986, the paper finds no evidence of such a relationship. These data afford an...