Search results for "Ricardian equivalence"

showing 3 items of 3 documents

How to pay for the war in times of imperfect commitment. Adam Smith and David Ricardo on the Sinking Fund

2014

AbstractThe paper proposes a comparative analysis of Smith's and Ricardo's views on the sinking fund. It shows that Smith and Ricardo agreed in stressing the ineffectiveness of the sinking fund as a policy instrument targeted at public debt repayment and tax-burden relief, pointing out that its actual workings had paradoxically helped to increase rather than reduce British total debt-load. Moreover, their explanation of the sinking fund paradox integrates a defective fiscal commitment technology with powerful politicians’ incentives to siphon off the money stored in the sinking fund to meet sudden increases of public expenditure whenever the occasion arose.

Macroeconomics060106 history of social sciencesGeneral Arts and HumanitiesKeynesian economics05 social sciencesEconomics Econometrics and Finance (miscellaneous)Public expenditure06 humanities and the artsDebt repaymentAdam smithAdam Smith David Ricardo Ricardian equivalence sinking fund imperfect commitmentSpanish Civil WarIncentiveHistory and Philosophy of ScienceSettore SECS-P/04 - Storia Del Pensiero Economico0502 economics and businessEconomics0601 history and archaeologySinking fundImperfect050207 economicsSettore SECS-P/01 - Economia Politica
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The effects of budget deficit on national saving in the OECD

2000

Abstract In this paper, we estimate a structural VAR using a panel of OECD countries, which includes national saving and budget deficit, both as the ratio to GDP, to test the Ricardian Equivalence hypothesis. In this framework, we separate saving and deficit movements into two types of shocks, associated with structural parameters of these economies. Our results suggest that Ricardian Equivalence did not work in our sample of OECD countries, since private saving compensated only a small fraction budget deficit. This supports the interpretation that the large budget deficits have been a very important factor behind the significant increase in real interest rates in the eighties and early nin…

MacroeconomicsRicardian equivalenceEconomics and EconometricsDeficit spendingWork (electrical)EconomicsSample (statistics)Oecd countriesReal interest rateFinance
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Determinants of current account balances

2011

rahoitusmarkkinatvaihtotaseglobal current account imbalancesepävarmuusPaneelimenetelmätheterogeneity in domestic financial marketsricardolainen ekvivalenssioptimointidynamic-optimizing approachRicardian equivalenceglobaalit vaihtotase-epätasapainotpanel data methodskansainvälinen taloustaloudellinen sääntely
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