Fiscal adjustments in Europe and Ricardian equivalence
According to the ‘Ricardian’ equivalence hypothesis, consumption is dependent on permanent disposable income and current deficits are equivalent to future tax payments. This hypothesis is tested on 14 European countries in the 1990s. The relationships between private sector savings and general gover...
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Associazione Economia civile
1998-09-01
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| Series: | PSL Quarterly Review |
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| Online Access: | http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10598/10482 |
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doaj-132cdd48b0f2409d8329f7eee063a5732020-11-24T23:25:17ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36431998-09-0151206247272Fiscal adjustments in Europe and Ricardian equivalenceV. DE BONIS R. PALADINIAccording to the ‘Ricardian’ equivalence hypothesis, consumption is dependent on permanent disposable income and current deficits are equivalent to future tax payments. This hypothesis is tested on 14 European countries in the 1990s. The relationships between private sector savings and general government deficit, and the GDP growth rate and the unemployment rate are determined. The results show the change in consumers' behaviour with respect to government deficit, and that expectations of an increase in future wealth are no longer associated with a decrease in deficit.http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10598/10482EuropeEconomic aspects |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
V. DE BONIS R. PALADINI |
| spellingShingle |
V. DE BONIS R. PALADINI Fiscal adjustments in Europe and Ricardian equivalence PSL Quarterly Review Europe Economic aspects |
| author_facet |
V. DE BONIS R. PALADINI |
| author_sort |
V. DE BONIS |
| title |
Fiscal adjustments in Europe and Ricardian equivalence |
| title_short |
Fiscal adjustments in Europe and Ricardian equivalence |
| title_full |
Fiscal adjustments in Europe and Ricardian equivalence |
| title_fullStr |
Fiscal adjustments in Europe and Ricardian equivalence |
| title_full_unstemmed |
Fiscal adjustments in Europe and Ricardian equivalence |
| title_sort |
fiscal adjustments in europe and ricardian equivalence |
| publisher |
Associazione Economia civile |
| series |
PSL Quarterly Review |
| issn |
2037-3635 2037-3643 |
| publishDate |
1998-09-01 |
| description |
According to the ‘Ricardian’ equivalence hypothesis, consumption is dependent on permanent disposable income and current deficits are equivalent to future tax payments. This hypothesis is tested on 14 European countries in the 1990s. The relationships between private sector savings and general government deficit, and the GDP growth rate and the unemployment rate are determined. The results show the change in consumers' behaviour with respect to government deficit, and that expectations of an increase in future wealth are no longer associated with a decrease in deficit. |
| topic |
Europe Economic aspects |
| url |
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10598/10482 |
| work_keys_str_mv |
AT vdebonis fiscaladjustmentsineuropeandricardianequivalence AT rpaladini fiscaladjustmentsineuropeandricardianequivalence |
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