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Cambridge Theorem, Ricardian Equivalence and Government Activity / Cambridge Theorem, ricardianische Äquivalenz und staatliches Handeln

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  • Gupta Kanhaya L.

    (University of Alberta, Department of Economics, CAN-Edmonton, T6G 2H4, Canada)

Abstract

The aim of this paper is threefold. First, it develops a generalized savings function which explicitly takes into account the government’s budget constraint properly specified. Second, it reexamines the “Cambridge Theorem” when the savings functions are properly specified. And, finally, it proposes a way to explicitly model the RET and shows how it would affect the steady-state rate of profit and what this would be.

Suggested Citation

  • Gupta Kanhaya L., 1996. "Cambridge Theorem, Ricardian Equivalence and Government Activity / Cambridge Theorem, ricardianische Äquivalenz und staatliches Handeln," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 215(3), pages 344-351.
  • Handle: RePEc:jns:jbstat:v:215:y:1996:i:3:p:344-351:n:1007
    DOI: 10.1515/jbnst-1996-0307
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