The Effects of Fiscal Policies when Incomes Are Uncertain: A Contradiction to Ricardian Equivalence.

S-Tier
Journal: American Economic Review
Year: 1988
Volume: 78
Issue: 1
Pages: 14-23

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper shows that, when future earnings are uncertain, the substitution of deficit fin ance for tax finance (or the introduction of an unfunded social secur ity program) can raise consumption even if all bequests reflect inter generational altruism. An operative bequest motive therefore need not imply Ricardian equivalence. This conclusion follows from the result , derived in the paper, that the uncertainty of future income makes t he existence of a future bequest uncertain to the prospective donor. Copyright 1988 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:78:y:1988:i:1:p:14-23
Journal Field
General
Author Count
1
Added to Database
2026-01-25