Feldstein, Martin S.; Elmendorf, Douglas W. - 2021
Because of the restrictive assumptions required to establish the theory of Ricardian equivalence, its relevance in … changes in tax receipts have no effect on consumer spending. The present study shows that Kormendi's results are a misleading … that in the equation specified by Kormendi, but with the years 1941 through 1946 excluded, increases in tax receipts have …