Using survey data to test for Ricardian equivalence

M.A. Allers, J. de Haan, C.A. de Kam

Research output: Contribution to journalArticleAcademicpeer-review

6 Citations (Scopus)

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 individuals 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.
Original languageEnglish
Pages (from-to)565-582
Number of pages18
JournalPublic Finance Review
Volume26
Issue number6
DOIs
Publication statusPublished - 1998

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