Exchange Rate, Interest Rate and Ricardian Equivalence Evidence from Pakistan
The aim of this study is to investigate the validity of Ricardian Equivalence Hypothesis in Pakistan by using annual data from 1973-2010. In our previous studies we investigated the Ricardian Equivalence Hypothesis and its sources of deviation in Pakistan by using Structural Consumption function and Euler Equation approach. The present study investigated this hypothesis in terms of rate of interest and exchange rate. Results of Auto Regressive Distributed Lag cointegration investigate the long run relationship among variables. By using OLS technique this study rejected Ricardian Equivalence Hypothesis in case of Pakistan. The findings of the study demonstrate the focus towards the significance of fiscal policies in raising private consumption and controlling budget deficits.
Volume (Year): Z (2012)
Issue (Month): SS ()
|Contact details of provider:|| Postal: 6 ROMANA PLACE, 70167 - BUCHAREST|
Web page: http://www.rei.ase.ro/
More information through EDIRC
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.:
- Waqas, Muhamad & Awan, Masood Sarwar & Aslam, Muhammad Amir, 2011. "We are living on the cost of our children," MPRA Paper 32044, University Library of Munich, Germany.
- Leiderman, Leonardo & Razin, Assaf, 1988.
"Testing Ricardian Neutrality with an Intertemporal Stochastic Model,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 20(1), pages 1-21, February.
- Leonardo Leiderman & Assaf Razin, 1987. "Testing Ricardian Neutrality with an Intertemporal Stochastic Model," NBER Working Papers 2258, National Bureau of Economic Research, Inc.
- Carlos Fonseca Marinheiro, . "Ricardian Equivalence: An Empirical Application to the Portuguese Economy," International Economics Working Papers Series ces0112, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, International Economics.
- Evans, Paul, 2001. "Consumer Behavior in the United States: Implications for Social Security Reform," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 568-82, October.
When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:15:y:2012:i:46:p:249-269. 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: (Radu Lupu)
If references are entirely missing, you can add them using this form.