Argument on ricardian equivalence and policy suggestions

  title={Argument on ricardian equivalence and policy suggestions},
  author={Chang Yun-kun},
Ricardian Equivalence Rule is an important factor which is used to evaluate fiscal deficit effect. This paper, starting with the Ricardian Equivalence Model, analyses the conditions and assumptions of the holding water of the Ricardian Equivalence. It further compares the different test results of the Ricardian Equivalence and points out that strengthening the econometric test to Ricardian Equivalence will pose significant meanings for China's fiscal policy-making.