The Ricardian Equivalence Proposition in OECD Countries: Does Government Debt Weigh Down Growth?

2006 ◽  
Author(s):  
Pavel Carrijo Rodrigues
2007 ◽  
Vol 94 (2) ◽  
pp. 220-225 ◽  
Author(s):  
Robert-Paul Berben ◽  
Teunis Brosens

2016 ◽  
Vol 12 (3) ◽  
pp. 165-183
Author(s):  
Ji-Young Jang ◽  
◽  
Chang-Soo Kim ◽  

2020 ◽  
Vol 3 (2) ◽  
pp. 26-49
Author(s):  
Sisay Demissew Beyene ◽  
Balázs Kotosz

The Ricardian equivalence hypothesis (REH) suggests that when the government attempts to stimulate the economy by raising debt-financed government spending, consumption and demand do not increase but rather remain the same. The objective of this study is to test the existence of the REH in Ethiopia, using annual data from 1990 to 2011 and by employing the autoregressive-distributed lag cointegration approach. The study includes three variables (budget deficit, government consumption expenditure, and government debt) which contribute to the REH along with another variable. The results show that only the budget deficit and government consumption expenditure fulfil the REH. However, government debt fails to fulfil it. Thus, limited evidence of the existence of the REH is found in Ethiopia.


1996 ◽  
Vol 96 (140) ◽  
pp. 1
Author(s):  
Steven Symansky ◽  
Douglas Laxton ◽  
Hamid Faruqee ◽  
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