TITLE:
Are Government Bonds Net Wealth? Some Empirical Evidence
AUTHORS:
Tito Belchior Silva Moreira, Geraldo da Silva e Souza, Fernando Antônio Ribeiro Soares
KEYWORDS:
Public Debt, Economic Growth, Ricardian Equivalence
JOURNAL NAME:
Modern Economy,
Vol.2 No.3,
July
28,
2011
ABSTRACT: This paper aims to investigate the impact of government debt on economic growth for a balanced panel of G7 countries over the period 1990-2008. We found empirical evidence that Ricardian Equivalence does not holds in general. The analysis indicates that only Germany shows a negative association between public debt and economic growth. The US and France show Ricardian equivalence and UK, Japan, Italy and Canada show a positive association.