The idea that taxes now, and borrowing will be the same because people know that if they don't pay the taxes now they will have to pay them in the future with interest. A stronger version of this theory holds over a multiple generation model where benefits and liabilities are bundled and passed between generations.
- Barro, 1974 "Are Government Bonds Net Wealth?" Journal of Political Economy
- Buchanan, 1976
- Tobin, 1980
- Feldstein, 1982
- Barro, 1989
- Dimand, 2002
|This macro-stub needs improving.|