Mr. Ricardo's Great Adventure : Estimating Fiscal Multipliers in a Truly Intertemporal Model /

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 aroun...

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Bibliographic Details
Main Author: Sgherri, Silvia
Other Authors: Bayoumi, Tamim
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006.
Series:IMF Working Papers; Working Paper ; No. 2006/168
Online Access:Full text available on IMF