Ricardian equivalence, an economic hypothesis holding that consumers are forward looking, requires assumptions that have been seriously challenged; however, even in a laboratory setting where all assumptions required are ensured to hold, behaviour of individuals is inconsistent with Ricardian equivalence.
Ricardian equivalence, an economic hypothesis holding that consumers are forward looking, requires assumptions that have been seriously challenged; however, even in a laboratory setting where all assumptions required are ensured to hold, behaviour of individuals is inconsistent with Ricardian equivalence.