Ricardian equivalence, budget deficits, and saving in the United States, 1955:1-1991:4
AbstractThe Ricardian equivalent theory is examined by dichotemizing the total US federal budget deficit into its structural (exogeneous) and cyclical (endogeneous) components. The former is hypothesized to be the expected, planned deficit, whereas the latter is viewed as the unpredictable, unplanned, unexpected deficit. Instrumental variables estimates for the periods 1955-1991 and 1973-1991 find that structural deficits elicit increased saving but cyclical deficits do not. Thus, the findings indicate support for a partially Ricardian equivalent world: saving only partially offsets budget deficits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 3 (1996)
Issue (Month): 8 ()
Contact details of provider:
Web page: http://www.tandf.co.uk/journals/routledge/13504851.html
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yoichi Matsubayashi & Takao Fujii, 2012. "Substitutability of Savings by Sectors: OECD Experiences," Discussion Papers 1215, Graduate School of Economics, Kobe University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.