Experimental Verification of Barro-Ricardo Equivalence Theorem
Petr Frejlich,
Helena Chytilová,
Vojtěch Kotrba
et al.
Abstract:The aim of this study is to verify the validity of Barro-Ricardo equivalence in Czech conditions with the help of experimental methods. Ricardian equivalence, in which case consumers postpone consumption under lower taxation, is a basic assumption of many studies dealing with intertemporal decision making and has important implications for government tax policy. Using nonparametric methods and panel data regression, we find that Ricardian equivalence does not hold in general. Our results suggest that taxation … Show more
Set email alert for when this publication receives citations?
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.