Macroeconomic model reference

Ricardian Equivalence Model

The proposition that a debt-financed tax cut has no effect on consumption because rational, forward-looking agents save the windfall to pay future tax liabilities.

Theory-based models · Derivation

Ricardian Equivalence derivation: assumptions and equations

Trace the Ricardian Equivalence derivation through assumptions, notation, equations, and failure cases.

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Ricardian Equivalence derivation: assumptions and equations

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