Economists are widely familiar with the Ricardian equivalence thesis. It maintains that, given the time-path of government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and affects neither the demand for commodities and services...

This note identifies a severe mistake in my article “Unexpected Consequences of Ricardian Expectations” that appeard in this journal in the July 2013 issue.

Economists are widely familiar with the Ricardian equivalence thesis. It maintains that, given the time-path of government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and affects neither the demand for commodities and services...

Economists are widely familiar with the Ricardian equivalence thesis. It maintains that, given the time-path of government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and affects neither the demand for commodities and services...

Government bonds are interest-bearing assets. Increasing public debt increases income, wealth, and consumption demand. The smaller government expenditure is, the larger consumption demand must be in equilibrium, and the larger must be public debt. Conversely, lower public debt implies higher...

In this paper, we examine the consequences of imperfect information on the pattern of transfers from parents to children. Drawing on the theory of mechanism design, we consider a model of family contract with two levels of effort. We prove that equal transfers among children are expected under...

This paper highlights formally the interaction existing between the quality of institutional governance, the education sector and economic growth. More fundamentally, we show how the quality of institutional governance matters in giving directly the appropriate incentives for human capital...

In this paper, we consider a two-period model of migration and remittances as implicit contract in a context of asymmetric information. Our model offers new theoretical findings with respect to the previous literature on the main determinants of remittances. According to self-interest thesis,...

In this paper , we consider an economic growth model with human capital accumulation , positive externalities and a cultural system of social norms . We show that endogenous rational emergence of this cultural belief may lead to increasing the stock of human capital and hence accelerating...

We consider a growth model with education, externalities and a cultural norm . We show that endogenous emergence of this cultural belief may lead to increasing the stock of human capital and accelerating national growth.The mechanism of this internalization is based on the existence of...