Ricardian Equivalence: an Empirical Application to the Japanese Economy
On the research of the economic effects of national debt, the Ricardo equivalence proposition(REP) is definitely the core issue and has been brought far-reaching influences as well. The REP has a very important policy implication, that is, the government debt failed to bring any changes of the aggregate social demand, and hence no changes to the national income either. To say it more clearly, if the REP holds, the expansionary fiscal policies taken through issuing national debt will be invalid, otherwise, they will be valid. This paper will comprehensively use both the direct method by testing the conclusion of REP and indirect method through Euler equation approach by testing the theoretical requirements of REP. Finally the paper comes to the conclusion that the REP is invalid in post-war Japanese economy.
Ricardian Equivalence Finite Planning Horizons Liquidity Constraints Non-linear Estimation
Yu Wu Xing Zhang
School of Economics, Hebei University, Baoding, 071002 School of Economics, Nankai University, Tianjin 300071, China
国际会议
The 22nd China Control and Decision Conference(2010年中国控制与决策会议)
徐州
英文
1825-1830
2010-05-26（万方平台首次上网日期，不代表论文的发表时间）