IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

How Rival Are the Ricardian Equivalence Proposition and the Fiscal Policy Potency View?

Listed author(s):
  • Dalamagas, Basil A
Registered author(s):

    Substitution of debt for taxes as a means of financing a given path of government expenditure would, according to the Ricardian equivalence proposition, have no important real consequences; yet it could, according to the traditional Keynesian view, have desirable countercyclical and growth effects. A reconciliation of these opposing views is not impossible if the author illuminates a source of deviation from the equivalence theorem, which has not been explored so far: the possibility that consumption decisions in each country are affected by the level of its indebtedness, when private agents operate under a debt illusion. The paper finds, within an explicit intertemporal optimization framework, strong empirical support for the debt-illusion hypothesis in a large sample of 52 countries. Copyright 1992 by Scottish Economic Society.

    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.

    Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

    Volume (Year): 39 (1992)
    Issue (Month): 4 (November)
    Pages: 457-476

    as
    in new window

    Handle: RePEc:bla:scotjp:v:39:y:1992:i:4:p:457-76
    Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292

    More information through EDIRC

    Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=0036-9292

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:39:y:1992:i:4:p:457-76. 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: (Wiley-Blackwell Digital Licensing)

    or (Christopher F. Baum)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.