Author: Benoît PerronPublisher:
ISBN:
Category : Budget deficits
Languages : en
Pages : 22
Book Description
Ricardian Equivalence and the Permanent Income Hypothesis
Author: Benoît PerronPublisher:
ISBN:
Category : Budget deficits
Languages : en
Pages : 22
Book Description
Testing Ricardian Equivalence Through Verification of the Permanent Income Hypothesis
Author: Wansup KimPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 0
Book Description
Testing the Ricardian Equivalence Theorem in the Framework of the Permanent Income Hypothesis
Author: Faik BilgiliThe Simplest Possible Presentation of the Life Cycle-Permanent Income Hypothesis and Ricardian Equivalence
Author: Sheldon H. SteinPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
In this paper, a set of simple numerical examples are used to illustrate the essence of the life cycle-permanent income hypothesis and Ricardian equivalence. The level of mathematical sophistication required of the reader is nothing more than grade school arithmetic. Since the simple Keynesian absolute income theory of consumption requires nothing more than elementary school mathematical competence, the playing field of the various theories is leveled for the novice reader.
Assessing Ricardian Equivalence
Author: Roberto RicciutiPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper reviews the literature on Ricardian equivalence. This hypothesis may be interpreted as a generalization to the short and the long run of the theories that put no weight on the real effects of public policies on aggregate demand. We argue that Ricardian equivalence relies on both the permanent income hypothesis and the fulfillment of the intertemporal government budget constraint. The theoretical literature emphasizes several reasons for departures from this hypothesis. However, the empirical literature is inconclusive. When Ricardian equivalence is tested in a life-cycle framework the hypothesis is usually rejected, while when the empirical analysis is based on optimizing models, it is usually accepted.
IMF Staff papers
Author: International Monetary Fund. Research Dept.Publisher: International Monetary Fund
ISBN: 1451956770
Category : Business & Economics
Languages : en
Pages : 228
Book Description
A central proposition regarding effects of different mechanisms of fi-nancing public expenditures is that, under specific circumstances, it makes no difference to the level of aggregate demand if the government finances its outlays by debt or taxation. This so-called Ricardian equivalence states that, for a given expenditure path, substitution of debt for taxes does not affect private sector wealth and consumption. This paper provides a model illustrating the implications of Ricardian equivalence, surveys the litera-ture, considers effects of relaxing the basic assumptions, provides a frame-work to study implications of various extensions, and critically reviews recent empirical work on Ricardian equivalence.
Essays on Liquidity Constraints, Aggregation, and the Permanent-income Hypothesis
Author: Xiaonian XuGovernment Debt, Life-cycle Income and Liquidity Constraints
Author: Hamid FaruqeePublisher:
ISBN:
Category : Debts, Public
Languages : en
Pages : 34
Book Description
Current Income and Private Consumption - Saving Decisions
Author: Anne BrunilaPublisher:
ISBN:
Category :
Languages : en
Pages : 80
Book Description
Tiivistelmä.
Author: R. Tiff Macklem