IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-24-00313.html
   My bibliography  Save this article

Are agents Ricardian? Evidence from the CBC survey

Author

Listed:
  • Nektarios Michail

    (Central Bank of Cyprus)

  • Theodosis Kallenos

    (Central Bank of Cyprus)

  • Ioanna Evangelou

    (Cyprus University of Technology)

Abstract

This paper provides survey estimates on whether economic agents show Ricardian-like behaviour, via providing the yes/no answers to the question "If there is a permanent increase in the level of government spending, we can expect an increase in taxation", in a survey conducted by the Central Bank of Cyprus in 2018. The findings suggest that only 12% of the respondents do not expect an increase in taxation, classifying them as non-Ricardian. Around 85% of the respondents expect an increase in taxation following an increase in government spending, suggesting that they display some degree of forward-looking behaviour. The finding holds important implications for fiscal policy and provides another potential explanation on why fiscal multipliers tend to be less than unity.

Suggested Citation

  • Nektarios Michail & Theodosis Kallenos & Ioanna Evangelou, 2024. "Are agents Ricardian? Evidence from the CBC survey," Economics Bulletin, AccessEcon, vol. 44(3), pages 1147-1152.
    • Handle: RePEc:ebl:ecbull:eb-24-00313
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I3-P89.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Ricardian equivalence; survey; government; taxation;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-24-00313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.