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dc.contributor.authorWhelan, Karl
dc.date.accessioned2013-05-14T14:24:57Z
dc.date.available2013-05-14T14:24:57Z
dc.date.issued1991
dc.identifier.citationWhelan, Karl. 'Ricardian equivalence and the Irish consumption function: the evidence re-examined'. - Economic & Social Review, Vol. 22, No. 3, April, 1991, pp. 229-238, Dublin: Economic & Social Research Institute
dc.identifier.issn0012-9984
dc.identifier.urihttp://hdl.handle.net/2262/66560
dc.description.abstractThe Ricardian Equivalence hypothesis states that economic agents perceive the future tax liabilities implicit in government debt issue and thus that increasing government expenditure partially crowds out private sector consumption through its effects on perceived permanent income. Thus, Ricardian equivalence implies that not only does a contraction of government expenditure provoke offsetting effects on aggregate demand but that it also leads to an increase in indirect tax revenues, thus setting in train a relatively painless cycle of debt reduction. Moore (1987) has presented results, based on tests from US literature, which he concluded provided strong evidence in favour of the hypothesis. Walsh (1988) confirmed that Moore's favoured econometric result was robust to data revisions and changes in data definition. Furthermore, Giavazzi and Pagano (1990) have discussed the notion of government spending reductions increasing private consumption to suggest a demandside explanation of Ireland's post-1987 experience of fiscal retrenchment combined with economic recovery while McAleese (1990) has referred to Moore's results in a similar context.en
dc.language.isoen
dc.publisherEconomic & Social Studies
dc.sourceEconomic & Social Reviewen
dc.subjectRicardian equivalenceen
dc.subjectconsumptionen
dc.subjectquantitative methodsen
dc.titleRicardian equivalence and the Irish consumption function: the evidence re-examined
dc.typeJournal Article
dc.publisher.placeDublinen


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