Ricardian equivalence, rational expectations, and the permanent income hypothesis.: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on August 1, 1990. The length of the article is 8843 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The Ricardian equivalence proposition and the permanent income hypothesis are tested in an intertemporal consumption model with rational expectations. The representative consumer incorporates the government budget constraint. An alternative hypothesis of incomplete tax discounting is nested within this model. A deterministic time trend is rejected for the variables of the model. Variables exhibit instead a stochastic trend. The permanent income model is not rejected by annual U.S. data (i.e., no excess sensitivity is found). The evidence with respect to Ricardian equivalence is mixed. The empirical study employs theorems from the cointegration literature and specifically address issues of nonstationary regressors. (Printed by permission of the publisher.)

Citation Details
Title: Ricardian equivalence, rational expectations, and the permanent income hypothesis.
Author: Alfred A. Haug
Publication:Journal of Money, Credit & Banking (Refereed)
Date: August 1, 1990
Publisher: Ohio State University Press
Volume: v22 Issue: n3 Page: p305(22)

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