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Roberto Ricciuti and Davide Di Laurea
''An experimental analysis of two departures from Ricardian equivalence''
( 2003, Vol. 8 No.11 )
We construct an overlapping-generations experiment to test for two alleged departures from Ricardian equivalence. In the first treatment the setting is close to the theoretical model, while in the second we allow for liquidity-constrained consumers. We then introduce uncertainty on future income for the first generation. Ricardian equivalence is well supported in the baseline experiment and to some extent in the liquidity-constraint case, whereas it is clearly rejected under uncertainty.
Keywords: experiments
JEL: H3 - Fiscal Policies and Behavior of Economic Agents: General
C9 - Design of Experiments: General
Manuscript Received : Sep 16 2003 Manuscript Accepted : Sep 23 2003

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