Reflections on Ricardian Equivalence

21 Pages Posted: 21 May 1998 Last revised: 16 Jul 2022

See all articles by Robert J. Barro

Robert J. Barro

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

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

Barro, Robert J., Reflections on Ricardian Equivalence (March 1996). NBER Working Paper No. w5502, Available at SSRN: https://ssrn.com/abstract=3109

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