Consumption in Developing Countries: Tests for Liquidity Constraintsand Finite Horizons
AbstractAdjustment programs in developing countries emphasize the importance of reducing fiscal deficits in order to improve aggregate saving and investment performance. Recent theoretical analyses associated with the Ricardian equivalence proposition, however, suggest that changes in the level of public-sector saving may be offset by a change in private saving. The empirical relevance of this proposition depends, among other things, on the length of consumers' horizons and on the extent to which households are liquidity-constrained. Empirical tests of a consumption model for a sample of developing economies do not support the equivalence propositions owing to the prevalence of liquidity constraints. Copyright 1989 by MIT Press.
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 MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 71 (1989)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.