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Using Survey Data To Test for Ricardian Equivalence

Author

Listed:
  • Maarten Allers

    (University of Groningen)

  • Jakob De Haan

    (University of Groningen)

  • Flip De Kam

    (University of Groningen)

Abstract

Drawing on nationwide and representative survey data for the Netherlands, this article tests, first, to what degree economic subjects are aware of the level of both government debt and deficits, and, second, examines whether fiscal policy relates to individual saving decisions. The results presented suggest that one of the central assumptions of the Ricardian equivalence hypothesis must be refuted: most individu als have little knowledge of the government's indebtedness. Furthermore, their saving behavior appears not to be influenced by the fiscal policy stance. The authors show that individual responses vary with age, education, income, and employment status, but not with having offspring.

Suggested Citation

  • Maarten Allers & Jakob De Haan & Flip De Kam, 1998. "Using Survey Data To Test for Ricardian Equivalence," Public Finance Review, , vol. 26(6), pages 565-582, November.
    • Handle: RePEc:sae:pubfin:v:26:y:1998:i:6:p:565-582
    DOI: 10.1177/109114219802600603
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    References listed on IDEAS

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    2. Bernasconi, Michele & Kirchkamp, Oliver & Paruolo, Paolo, 2009. "Do fiscal variables affect fiscal expectations? Experiments with real world and lab data," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 253-265, May.
    3. Nektarios Michail & Theodosis Kallenos & Ioanna Evangelou, 2024. "Are agents Ricardian? Evidence from the CBC survey," Economics Bulletin, AccessEcon, vol. 44(3), pages 1147-1152.
    4. Starkov, Egor, 2023. "Only time will tell: Credible dynamic signaling," Journal of Mathematical Economics, Elsevier, vol. 109(C).
    5. Roth, Christopher & Settele, Sonja & Wohlfart, Johannes, 2022. "Beliefs about public debt and the demand for government spending," Journal of Econometrics, Elsevier, vol. 231(1), pages 165-187.
    6. Bernasconi, Michele & Kirchkamp, Oliver & Paruolo, Paolo, 2003. "Expectations and Perceived Causality in Fiscal Policy : An Experimental Analysis Using Real World Data," Papers 03-03, Sonderforschungsbreich 504.
    7. Dilla, Diana, 2017. "Staatsverschuldung und Verschuldungsmentalität [Public Debt and Debt Mentality]," MPRA Paper 79432, University Library of Munich, Germany.
    8. Bertocco Giancarlo & Fanelli Luca & Paruolo Paolo, 2002. "On the determinants of inflation in Italy: evidence of cost-push effects before the European Monetary Union," Economics and Quantitative Methods qf0223, Department of Economics, University of Insubria.
    9. Mr. Marcos Poplawski Ribeiro & Jan-Christoph Rülke, 2011. "Fiscal Expectations Under the Stability and Growth Pact: Evidence from Survey Data," IMF Working Papers 2011/048, International Monetary Fund.
    10. Alan D. Viard, 1999. "The new budget outlook: policymakers respond to the surplus," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-15.
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    13. Roberto Ricciuti, 2003. "Assessing Ricardian Equivalence," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 55-78, February.

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