Fiscal Policy and Private Sector Saving Behavior
Tax or debt financing of a given rate of government expenditures would, according to the now well-known Ricardian Equivalence proposition, have equivalent effects on aggregate demand. Among the reasons for a deviation from the equivalence is the possibility that the government and the private sector have different planning horizons. The paper finds no empirical support for differing planning horizons across sectors in a group of 16 developing economies and, therefore, provides empirical evidence for the equivalence hypothesis.
If you experience problems downloading a file, check if you have the
view it first. In case of further problems read
the IDEAS help
. Note that these files are not
on the IDEAS
site. Please be patient as the files may be large.
Paper provided by International Monetary Fund in its series IMF Working Papers
Date of creation:
01 Jul 1987Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Related researchKeywords: Developing countries
; Private savings
; Deficit financing
; Budget deficits
; Economic models
; consumption function
; fiscal policy
; disposable income
; aggregate demand
; government expenditures
; budget constraint
; fiscal deficits
; consumption decisions
; private consumption
; consumer behavior
; government spending
; current consumption
; government budget
; aggregate consumption
; government budget constraint
; tax collection
; current disposable income
; budget constraints
; permanent income hypothesis
; tax income
; tax structure
; fiscal policy variables
; labor income
; permanent income
; fiscal variables
; fiscal deficit variables
; marginal propensity to consume
; fiscal imbalances
; tax revenue
; increase in consumption
; the marginal propensity to consume
; current income
; fiscal deficit
; fiscal savings
; tax bases
; fiscal policies
; capital accumulation
; public deficits
; public debt
; fiscal behavior
ReferencesNo references listed on IDEAS
You can help add them by filling out this form
Citations are extracted by the CitEc Project
, subscribe to its RSS feed
for this item.
- Waqas, Muhamad & Awan, Masood Sarwar & Aslam, Muhammad Amir, 2011.
"We are living on the cost of our children,"
32044, University Library of Munich, Germany.
- Catsambas, Thanos & Pigato, Miria, 1989.
"The consistency of government deficits with macroeconomic adjustment : an application to Kenya and Ghana,"
Policy Research Working Paper Series
287, The World Bank.
This item is not listed on Wikipedia, on a reading list
or among the top items
StatisticsAccess and download statistics
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:87/51. See general 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: (Jim Beardow) or (Hassan Zaidi).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.