De Economist

, Volume 140, Issue 1, pp 65–82 | Cite as

Financing government spending in the Netherlands

An analysis from Ricardian perspective
  • C. Den Broeder
  • C. C. A. Winder
Article

Summary

This article addresses the issue of financing government spending from the viewpoint of the Ricardian equivalence theory. After a review of the literature, including a discussion of the underlying assumptions and a comparison with the Keynesian and classical views, we look for empirical evidence for The Netherlands. The empirical results correspond with the findings of many other studies: Ricardian equivalence has to be rejected, although consumers do not completely ignore the government budget constraint. We stress, however, that alternative mechanisms might also be responsible for the empirical findings.

Keywords

Empirical Evidence Empirical Result International Economic Public Finance Budget Constraint 

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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • C. Den Broeder
  • C. C. A. Winder

There are no affiliations available

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