Testing the Ricardian equivalence hypothesis in the case of Ethiopia: An autoregressive-distributed lag approach

@inproceedings{Beyene2020TestingTR,
  title={Testing the Ricardian equivalence hypothesis in the case of Ethiopia: An autoregressive-distributed lag approach},
  author={S. Beyene and B. Kotosz},
  year={2020}
}
The Ricardian equivalence hypothesis (REH) suggests that when the government attempts to stimulate the economy by raising debt-financed government spending, consumption and demand do not increase but rather remain the same. The objective of this study is to test the existence of the REH in Ethiopia, using annual data from 1990 to 2011 and by employing the autoregressivedistributed lag cointegration approach. The study includes three variables (budget deficit, government consumption expenditure… Expand

Tables from this paper

References

SHOWING 1-10 OF 58 REFERENCES
Ricardian Equivalence Hypothesis and Budgetary Deficits: The Case of Pakistan 1972-2008
During the last few decades, the Ricardian equivalence hypothesis (REH) has been an important theme of economic research both theoretical and applied. However, to test the validity and consistency ofExpand
Ricardian Equivalence Hypothesis in the Sub-Sahara African Countries
The validity of the Ricardian equivalence proposition remains disputed in spite of the numerous empirical work. This study utilized panel ARDL estimation approach to investigate the evidence ofExpand
Empirical test of the Ricardian Equivalence in the Kingdom of Lesotho
Abstract The objective of this paper is to test the existence of Ricardian Equivalence in Lesotho using annual data for two sample periods, 1980–2014 and 1988–2014. This proposition is important andExpand
Testing the Ricardian Equivalence Theorem: Time Series Evidence from Greece
The paper explores the long-run relationship between government domestic borrowing and private savings for a small EU country. It represents an attempt to assess the relevance of RicardianExpand
Macroeconomic determinants of external indebtedness of Ethiopia: ARDL approach to co-integration
Although Ethiopia is one of the Heavily Indebted Poor Countries (HIPC), there is a lack of empirical studies about the determinants of its external indebtedness. This paper aims to fill this gap byExpand
An Empirical Application of Debt Neutrality to the Nigerian Economy: Further Evidence
Domestic debt accumulation by the Nigerian government has increased in recent times. One reason adduced for this is the need to finance the fiscal deficit. At the same time, the government isExpand
FISCAL DEFICIT AND THE GROWTH OF DOMESTIC OUTPUT IN NIGERIA
The study focuses on the relationship between fiscal deficit and domestic output (using agricultural output as a proxy) in Nigeria. In other to have a robust model, other parameters of fiscalExpand
Public debt sustainability and endogenous seigniorage in Brazil: time-series evidence from 1947–1992
Using national accounts data for the revenue-GDP and expenditure GDP ratios from 1947 to 1992, we examine two central issues in public finance. First, was the path of public debt sustainable duringExpand
Testing Keynesian Proposition And Ricardian Equivalence: More Evidence On The Debate
This paper takes its motives from recent literature concerning the debate on the Keynesian proposition and the Ricardian equivalence, using data of the Greek economy and applying cointegrationExpand
Domestic Debt and the Growth of Nigerian Economy
The study investigates the relationship between domestic debt and economic growth in Nigeria. The Ordinary Least Squares Method (OLS), Error Correction and parsimonious models are used to analyze Expand
...
1
2
3
4
5
...