Similar Search Results

The Relationship between Public and Private Saving in Spain : Does Ricardian Equivalence Hold?

Castro, Francisco de - 2009

This paper aims to test the validity of the Ricardian proposition for the Spanish economy from three different approaches: a) by testing its theoretical implications on the stability of national saving and the relationship between fiscal and current account balances, b) by carrying a number of...

Persistent link: https://www.econbiz.de/10013155753

Ricardian Equivalence, Foreign Debt and Sovereign Default Risk

Eichler, Stefan - 2019

We study the impact of sovereign solvency on the private-public savings offset. Using data on 80 economies for 1989–2010, we find robust evidence for a U-shaped pattern in the private-public savings offset in sovereign credit ratings. While the 1:1 savings offset implied by Ricardian...

Persistent link: https://www.econbiz.de/10012902385

Debt, Deficits, and Age-Specific Mortality

Faruqee, Hamid - 2007

This paper develops an overlapping agents model with age-specific mortality rates. The analytical framework also nests Blanchard's (1985) perpetual youth model as a special, though perhaps not realistic, case. With age specific mortality rates, youth is fleeting. Using standard hyperbolic...

Persistent link: https://www.econbiz.de/10012778598

Private Sector Consumption Behavior and Non-Keynesian Effects of Fiscal Policy

Bhattacharya, Rina - 2006

This paper explores the hypothesis that the propensity to consume out of income is not constant but varies, perhaps in a nonlinear fashion, with fiscal variables. It examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian...

Persistent link: https://www.econbiz.de/10012782586

Life-Cycles, Dynasties, Saving : Implications for Closed and Small, Open Economies

Faruqee, Hamid - 2006

This paper examines the macroeconomic implications of life-cycle and dynastic saving behavior for closed and small, open economies. Using an extended version of Blanchard`s overlapping agents model, the analytical framework nests these two competing views, treating agents as either dynastic...

Persistent link: https://www.econbiz.de/10012782730

Assessing Ricardian Equivalence for the New Member States : Does Debt-Neutrality Matter?

Reitschuler, Gerhard - 2008

Using a structural model based on dynamic optimizing agents, we empirically test the Ricardian Equivalence Proposition (REP) for eleven New EU-Member States (NMS). We extend the basic model by including the government budget constraint, thus being able to evaluate whether individuals take the...

Persistent link: https://www.econbiz.de/10012770506

Fading Ricardian Equivalence in Ageing Japan

Saito, Ikuo - 2016

Japan seems to be turning less Ricardian, a trend set to continue. First, the discount wedge seems to have risen, suggesting that consumers have become more myopic. Second, some evidence points to the possibility that an increasing number of households are liquidity constrained. If these...

Persistent link: https://www.econbiz.de/10012977770

When do fiscal consolidations lead to consumption booms? Lessons from a laboratory experiment

Geiger, Martin; Luhan, Wolfgang; Scharler, Johann - 2015

According to the expectations channel, a fiscal consolidation may give rise to less contractionary, or even … design a laboratory experiment to study the conditions under which the expectations channel operates. Our results indicate … consumption, which supports the expectations channel. We also find that the expectations channel is more pronounced if the fiscal …

Persistent link: https://www.econbiz.de/10011382733

A Temporary VAT Cut as Unconventional Fiscal Policy

Bachmann, Ruediger; Born, Benjamin; Goldfayn-Frank, Olga; … - 2021

We exploit the unexpected announcement of an immediate, temporary VAT cut in Germany in the second half of 2020 as a natural experiment to study the spending response to unconventional fiscal policy. We use survey and scanner data on households’ consumption expenditures and their perceived...

Persistent link: https://www.econbiz.de/10012799699

The Effects of Fiscal Policy on Households during the COVID-19 Pandemic

Bui, Dzung; Dräger, Lena; Hayo, Bernd; Nghiem, Giang - 2021

channels through which financial support affects consumer sentiment are creating more optimism about macroeconomic expectations …

Persistent link: https://www.econbiz.de/10012623210