Buy this book
![Loading indicator](/images/ajax-loader-bar.gif)
We estimate tax multipliers in a "Blanchard-Yaari" consumption model where Ricardian equivalence is broken because the private sector discounts the future at a faster rate than the real rate of interest. The model fits U.S. data since 1955 extremely well-entailing a discount wedge of around 20 percent a year and fiscal multipliers of 0.15-0.4-depending on the permanence of the change in taxes/transfers, and is much superior to one that assumes some consumers are fully Ricardian and others follow simple rules of thumb. The implied high private sector rate of discount has wide implications for policymakers.
Buy this book
![Loading indicator](/images/ajax-loader-bar.gif)
Subjects
Econometric models, Discount, Fiscal policy, TaxationPlaces
United StatesShowing 1 featured edition. View all 1 editions?
Edition | Availability |
---|---|
1
Mr. Ricardo's great adventure: estimating fiscal multipliers in a truly intertemporal model
2006, International Monetary Fund, Western Hemisphere Dept.
in English
|
aaaa
|
Book Details
Edition Notes
"July 2006."
Includes bibliographical references (p. 17-18).
Also available on the World Wide Web.
The Physical Object
ID Numbers
Community Reviews (0)
Feedback?February 14, 2010 | Edited by WorkBot | add more information to works |
December 10, 2009 | Created by WorkBot | add works page |