On debt neutrality in life-cycle models

Research output: Contribution to journalArticleResearchpeer-review

Abstract

A parallelism is established between pure life-cycle models and those in which altruism is one-sided in the discussion of the public debt neutrality. It is argued that when indiduals behave as pure life cyclers, the coercive transfers necessary to offset the effects of the debt have the same nature, and take place under the same conditions, as the voluntary intrafamily bequests and gifts which constitute the usual basis for the 'Ricardian equivalence theorem'. © 1990.
Original languageEnglish
Pages (from-to)233-238
JournalEconomics Letters
Volume33
DOIs
Publication statusPublished - 1 Jan 1990

Fingerprint Dive into the research topics of 'On debt neutrality in life-cycle models'. Together they form a unique fingerprint.

Cite this