Reflections on Ricardian Equivalence
21 Pages Posted: 21 May 1998 Last revised: 16 Jul 2022
Date Written: March 1996
Abstract
The Ricardian equivalence proposition for public debt in my 1974 JPE paper is related to the discussions in Ricardo's Funding System, Smith's Wealth of Nations, and a number of treatments in macroeconomics from the 1950s to the 1970s. Useful extensions of the basic invariance proposition involve tax smoothing (in the context of distorting taxation) and the determinants of the maturity and other characteristics of the debt structure (in an environment of uncertainty).
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Parental Allocations to Children: New Evidence on Bequest Differences Among Siblings
By Jere Behrman and Mark R. Rosenzweig
-
Parental Altruism Under Imperfect Information: Theory and Evidence
-
The Equal Division Puzzle - Empirical Evidence on Intergenerational Transfers in Sweden
-
By Giorgio Brunello, Margherita Fort, ...
-
Ricardian Equivalence with Incomplete Household Risk Sharing
-
Parents' Desire to Make Equal Inter Vivos Transfers
By Thor O. Thoresen and Elin Halvorsen