Journal article | Zeitschriftenartikel

The Ricardian equivalence hypothesis: evidence from Bangladesh

This paper examines the Ricardian equivalence hypothesis (REH) and its sources of failure in the case of Bangladesh using various theoretical specifications, annual data from 1974-2001 and linear and non-linear time series techniques. The general findings tend to invalidate the REH: a finite time horizon and the presence of liquidity-constrained individuals are the sources of deviation from the REH. Empirical results reveal that real per capita private consumption (C) under various specifications is cointegrated generally at the 5% level with real per capita income (Y), government expenditure before and after interest rate repayments (G & G2), taxes (T) and the interest rate (r). Results reveal that an increase in G, G2, T and r reduces C and that an increase in budget deficits raises trade deficits. These results highlight the importance of fiscal policies in boosting private consumption and controlling trade deficits, which are the prime goals of stabilisation policies being followed by Bangladesh.

The Ricardian equivalence hypothesis: evidence from Bangladesh

Urheber*in: Siddiki, Jalal Uddin

Rechte vorbehalten - Freier Zugang

0
/
0

Umfang
Seite(n): 1419-1435
Sprache
Englisch
Anmerkungen
Status: Postprint; begutachtet (peer reviewed)

Erschienen in
Applied Economics, 42(11)

Thema
Wirtschaft
Öffentliche Finanzen und Finanzwissenschaft
Wirtschaftspolitik

Ereignis
Geistige Schöpfung
(wer)
Siddiki, Jalal Uddin
Ereignis
Veröffentlichung
(wo)
Vereinigte Staaten von Amerika
(wann)
2010

DOI
URN
urn:nbn:de:0168-ssoar-250160
Rechteinformation
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
Letzte Aktualisierung
21.06.2024, 16:27 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Zeitschriftenartikel

Beteiligte

  • Siddiki, Jalal Uddin

Entstanden

  • 2010

Ähnliche Objekte (12)