Fiscal Policy and Private Sector Saving Behavior : Tests of Ricardian Equivalence in Some Developing Economies »
Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 1987
Keywords: taxation, consumption function, disposable income, aggregate demand
Tax or debt financing of a given rate of government expenditures would, according to the now well-known Ricardian Equivalence proposition, have equivalent effects on aggregate demand. Among the reasons for a deviat...