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

  title={Testing the Ricardian equivalence hypothesis in the case of Ethiopia: An autoregressive-distributed lag approach},
  author={S. Beyene and B. Kotosz},
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

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