Fandom

Economics

Ricardian Equivalence

436pages on
this wiki
Add New Page
Talk0 Share

DefinitionEdit

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.

Sources:Edit

  • 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.

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.