The results of a series of experiments testing Ricardian equivalence are reported. The experimental design is based on an overlapping generations model similar to Barro (1974). Expansionary and contractionary fiscal policies are examined. When theory predicts a positive bequest, decision close to those predicted by Ricardian equivalence are observed after allowing for learning. The imposition of a binding non-negativity constraint on bequests produces the predicted Keynesian behavior. The cost of deviation from the theoretical equilibrium seem to be an important determinant of the variability of the observed decisions around the theoretical equilibrium.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number
738.
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)