Ricardian equivalence
nounEtymology
Proposed by economist David Ricardo in the early 19th century.
Definitions
The idea that consumers are forward-looking and so internalize the government's budget…
The idea that consumers are forward-looking and so internalize the government's budget constraint when making their consumption decisions, so that, for a given pattern of government spending, the method of financing such spending does not affect agents' consumption decisions, and thus does not change aggregate demand.
The neighborhood
Vish — recursive loop
No curated loop yet for Ricardian equivalence. Loops are being traced one word at a time while the ingestion pipeline matures.
sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA