Article

Ricardian equivalence and the intertemporal Keynesian multiplier

PSE and CEPREMAP-ENS, France
Economics Letters (Impact Factor: 0.45). 02/2006; DOI: 10.1016/j.econlet.2006.08.010
Source: RePEc

ABSTRACT We show that Keynesian multiplier effects can be obtained in dynamic optimizing models if one combines both price rigidities and a “non-Ricardian” framework where, due for example to the birth of new agents, Ricardian equivalence does not hold.

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