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What People Know and What Economists Think They Know: Surveys on Ricardian Equivalence

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  • Gruen, David W R

Abstract

Over six-hundred economics students estimate the level of outstanding Australian federal government debt, while eleven academic economists predict the proportion of students with "a rough idea of the amount of this debt" (in a sense defined precisely in the paper). Student knowledge is very meager; but the average academic overestimates it fivefold. The relevance of these results for the Ricardian equivalence hypothesis is discussed. Copyright 1991 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Gruen, David W R, 1991. "What People Know and What Economists Think They Know: Surveys on Ricardian Equivalence," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 1-9, June.
    • Handle: RePEc:bla:ausecp:v:30:y:1991:i:56:p:1-9
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    Cited by:

    1. Bernasconi, Michele & Kirchkamp, Oliver & Paruolo, Paolo, 2009. "Do fiscal variables affect fiscal expectations? Experiments with real world and lab data," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 253-265, May.
    2. Bertocco Giancarlo & Fanelli Luca & Paruolo Paolo, 2002. "On the determinants of inflation in Italy: evidence of cost-push effects before the European Monetary Union," Economics and Quantitative Methods qf0223, Department of Economics, University of Insubria.
    3. David Gruen, 1997. "Ignorance and Ricardian Equivalence," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 35-44, March.
    4. Canale, Rosaria Rita & Napolitano, Oreste, 2009. "The recessive attitude of EMU policies: reflections on the italian experience, 1998–2008," MPRA Paper 20207, University Library of Munich, Germany.
    5. Alan D. Viard, 1999. "The new budget outlook: policymakers respond to the surplus," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-15.
    6. Charles Wyplosz, 2002. "Fiscal Policy: Institutions vs. Rules," IHEID Working Papers 03-2002, Economics Section, The Graduate Institute of International Studies.

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