Government debt, Consumption, and Interest Rates: An Empirical Study of the Ricardian Equivalence Hypothesis

摘要: This paper investigates the effects of government debt on private consumption and interest rates (i.e., Ricardian equivalence hypothesis) in a nonlinear-quadratic equilibrium framework, combined with time series analysis data. The model is summarized by restrictions coefficients vector autoregressive (VAR) representation relevant variables. not rejected for sample period 1947 through 1979 even though evidence was overwhelming. It when is. extended, to... include, the. Reagan .administration .period upto 1987,1. A more detailed data based VAR implies, howsver',that rejection does necessarily imply hj-pothesis recent years that equi\-alence hypothesis still provides plausible approximation reality.