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react. This paper re-investigates the extent of possible offsetting private saving behaviour to fiscal policy changes. The … results suggest that the private saving offset is around 40% on average across countries in both the short and the long term …, making it the most potent policy tool. Saving offsets are stronger the higher the level of government debt consistent with …
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react. This paper re-investigates the extent of possible offsetting private saving behaviour to fiscal policy changes. The … results suggest that the private saving offset is around 40% on average across countries in both the short and the long term …, making it the most potent policy tool. Saving offsets are stronger the higher the level of government debt consistent with …
Persistent link: https://www.econbiz.de/10013142980
Tax or debt financing of a given rate of government expenditures would, according to the now well-known Ricardian Equivalence proposition, have equivalent effects on aggregate demand. Among the reasons for a deviation from the equivalence is the possibility that the government and the private...
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