Showing 1 - 10 of 599
This paper looks at theoretical and empirical issues associated with the operation of fiscal stabilizers within an economy. It argues that such stabilizers operate most effectively at a national, rather than local, level. As differing cycles across regions tend to offset each other for the...
Persistent link: https://www.econbiz.de/10005504538
The Ricardian equivalence theorem has been widely debated since (at least) the seventies. The theorem states that househoolds should not change their consumption path in response to changed timing of taxes, given the path of government consumption. In the paper, theoretical models giving rise to...
Persistent link: https://www.econbiz.de/10005423808
TTwo equilibrium possibilities are known to obtain in a standard overlapping-generations model with dynastic preferences: either the altruistic bequest motive is operative for every generation (in which case, Ricardian equivalence obtains) or it is not, for any generation. Dynamic equilibria,...
Persistent link: https://www.econbiz.de/10005442114
In this article we analyse whether the Ricardian equivalence hypothesis is a valid approximation for Spain’s economic reality or whether there exist deviations from that situation which would be more in line with the conventional Keynesian perspective of the effects of debt on private...
Persistent link: https://www.econbiz.de/10005382223
The purpose of this paper is to test the Ricardian Equivalence Hypothesis REH by estimating a SVAR model. In this framework, we separate the co-movements of saving rate and budget deficit rate into two shocks, associated with structural parameters, as if we were looking for ‘‘two needles in...
Persistent link: https://www.econbiz.de/10005406761
A number of empirical studies have failed to find a significant relationship between deficits and interest rates. This "non-finding" has become something of a stylized fact among many economists and is often cited as evidence of the validity of the Ricardian equivalence theorem. In this paper we...
Persistent link: https://www.econbiz.de/10005417332
I develop a tractable, two-country, real model of macroeconomic interdependence with a role for net foreign asset dynamics. Absence of Ricardian equivalence in an overlapping generations structure ensures existence of a well-defined, endogenously determined, steady-state, international...
Persistent link: https://www.econbiz.de/10004968825
In response to the 2008-2009 global financial crisis (GFC), several governments across the world, including Australia, made frenzied efforts to stimulate their economies by increasing spending and accumulating huge deficits. While the effects of stimulus packages are yet to be revealed, the...
Persistent link: https://www.econbiz.de/10011130102
The purpose of this paper is to estimate a structural VAR model using macroeconomic data of Moroccan Economy, which includes national saving rate and budget deficit rate, to test the Ricardian Equivalence hypothesis. In this framework we separate saving and deficit movements into two types of...
Persistent link: https://www.econbiz.de/10011108619
Does the economic analysis associated with the modern Austrian school favor a policy of restraining the government’s fiscal deficit even in a subpar economy, as suggested by those who (pejoratively) label such a policy “austerian”? Because resources are not superabundant even in a subpar...
Persistent link: https://www.econbiz.de/10011154710