IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Gli effetti del debito pubblico quando la ricchezza è un fine

  • Moramarco Vito
Registered author(s):

    Common wisdom in economics suggests that, if consumption is not affected by the rate of interest, the hypothesis of Ricardian equivalence implies neutrality of public debt concerning the structure of aggregate demand. More precisely, an expansion of government expenditure financed through bonds is strictly equivalent to a budget balanced expansive policy. Government bonds induce real effects on consumption only if Ricardian equivalence doesn't hold, i.e., whenever individuals are not forward-looking or not fully altruistic concerning future generations. In this paper I argue that the above result relies upon the idea that wealth does not enter the underlying utility function directly. Assuming the alternative point of view (i.e., both the dynamics of consumption and of wealth are a source of welfare) the paper shows how neutrality may not hold even when the Ricardian equivalence is fully operative and interest rates remain constant.

    If 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.

    File URL: http://www.rivisteweb.it/download/article/10.1428/1836
    Download Restriction: no

    File URL: http://www.rivisteweb.it/doi/10.1428/1836
    Download Restriction: no

    Article provided by Società editrice il Mulino in its journal Economia politica.

    Volume (Year): (1997)
    Issue (Month): 1 ()
    Pages: 71-84

    as
    in new window

    Handle: RePEc:mul:jb33yl:doi:10.1428/1836:y:1997:i:1:p:71-84
    Contact details of provider:

    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:mul:jb33yl:doi:10.1428/1836:y:1997:i:1:p:71-84. 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: ()

    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.