Arbeitspapier
The (in)validity of the Ricardian equivalence theorem: Findings from a representative German population survey
In this paper, we utilise data from a German population survey to test the validity of the Ricardian equivalence theorem (RET). In 2013, 2,000 representatively chosen people were asked whether they have altered their consumption and saving behaviour in response to the significant increase in public debt that occurred between 2008 and 2012. Our findings suggest that, in general, RET does not hold. Only 7% of our respondents state that they consume a smaller proportion of their income and save a larger proportion in response to public debt accumulation. Moreover, using multinominal logit regressions, we find that individuals' consumption responses are significantly related to their economic situation, time preferences, education, and age.
- Language
-
Englisch
- Bibliographic citation
-
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 11-2016
- Classification
-
Wirtschaft
Consumer Economics: Empirical Analysis
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Macroeconomics: Consumption; Saving; Wealth
Fiscal Policies and Behavior of Economic Agents: Household
- Subject
-
Ricardian equivalence
public debt
private consumption
private saving
survey
Germany
- Event
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Geistige Schöpfung
- (who)
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Hayo, Bernd
Neumeier, Florian
- Event
-
Veröffentlichung
- (who)
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Philipps-University Marburg, School of Business and Economics
- (where)
-
Marburg
- (when)
-
2016
- Handle
- Last update
- 10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hayo, Bernd
- Neumeier, Florian
- Philipps-University Marburg, School of Business and Economics
Time of origin
- 2016
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