The Irish consumption function and Ricardian Equivalence
Citation:
pp43-60Download Item:
Abstract:
The paper examines whether the Ricardian Equivalence Proposition holds for Ireland. This proposition argues that it does not matter how the government finances a given level of public spending. Specifically, it claims that economic agents anticipate the future tax liability implicit in the issue of government paper. The empirical results indicate that the Irish data provide evidence of complete tax discounting. One of the implications of this is that the level of domestic interest rates is not affected by the extent of government borrowing.
Author: Moore, MJ
Publisher:
Economic & Social StudiesType of material:
Journal articleCollections
Series/Report no:
Economic and Social ReviewVol.19, No. 1, October, 1987
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Full text availableKeywords:
Ricardian Equivalence, Taxation - IrelandISSN:
0012-9984Metadata
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