Empirical evidence on the Ricardian equivalence in Romania

Abstract

The Ricardian equivalence has become one of the main research concern for many contemporary economists, in the actual context – by stepping into the second phase of a structural economic crisis. This paper is showing through an econometric model what happened in Romania between 2004 and 2012 with the households’ consumption, by following the Ricardian equivalence hypothesis.

Keywords

• Ricardian equivalence
• consumption
• government expenditure