Arbeitspapier
Debt Capitalization: A New Perspective on Ricardian Equivalence
Rational individuals know that present government debts transform into higher future taxes. The Ricardian equivalence implies that the burden of the debt is not shifted between generations because of compensating intergenerational transfers. While the assumptions for Ricardian equivalence to hold are quite demanding, we argue that there exists another equivalence mechanism which works also with non-altruistic individuals: Public debts capitalize into property values. Thus, communities with larger net debts exhibit, ceteris paribus, lower property prices. We provide empirical evidence for debt capitalization using unique data for the Swiss metropolitan area of Zurich.
- Sprache
-
Englisch
- Erschienen in
-
Series: CREMA Working Paper ; No. 2008-30
- Klassifikation
-
Wirtschaft
State and Local Borrowing
Finance in Urban and Rural Economies
Public Economics: General
- Thema
-
Capitalization
Public Debts
Ricardian Equivalence
Taxes
Local Public Goods
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Stadelmann, David
Eichenberger, Reiner
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Research in Economics, Management and the Arts (CREMA)
- (wo)
-
Basel
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Stadelmann, David
- Eichenberger, Reiner
- Center for Research in Economics, Management and the Arts (CREMA)
Entstanden
- 2008
Ähnliche Objekte (12)
Debt Shifting and Thin-capitalization Rules
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Links between the Eurozone stock markets: A new perspective, considering the capitalization level
The Ritual of Capitalization
The Impact of Thin-Capitalization Rules on External Debt Usage: A Propensity Score Matching Approach
Public Debt – The EU Perspective
A European perspective on public debt
Government debt and budget deficit nexus in Pakistan: Evidence for Ricardian Equivalence Hypothesis
Tainted Love: Art's Ethos and Capitalization
Optimal bank capitalization in crowded markets
Public debt in the "new normal": A Schumpeterian perspective on fiscal policy
Debt Shifting and Thin-capitalization Rules
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Links between the Eurozone stock markets: A new perspective, considering the capitalization level
The Ritual of Capitalization
The Impact of Thin-Capitalization Rules on External Debt Usage: A Propensity Score Matching Approach
Public Debt – The EU Perspective
A European perspective on public debt
Government debt and budget deficit nexus in Pakistan: Evidence for Ricardian Equivalence Hypothesis
Tainted Love: Art's Ethos and Capitalization
Optimal bank capitalization in crowded markets
Public debt in the "new normal": A Schumpeterian perspective on fiscal policy
Debt Shifting and Thin-capitalization Rules
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice
Links between the Eurozone stock markets: A new perspective, considering the capitalization level
The Ritual of Capitalization
The Impact of Thin-Capitalization Rules on External Debt Usage: A Propensity Score Matching Approach
Public Debt – The EU Perspective
A European perspective on public debt
Government debt and budget deficit nexus in Pakistan: Evidence for Ricardian Equivalence Hypothesis
Tainted Love: Art's Ethos and Capitalization
Optimal bank capitalization in crowded markets