Ricardian equivalence (English, noun)
expansion: Ricardian equivalence (uncountable)
Senses:
topics: economics
sciences
glosses: The idea that consumers are forward-looking and so internalize the government's budget constraint when making their consumption decisions, so that, for a given pattern of government spending, the method of financing such spending does not affect agents' consumption decisions, and thus does not change aggregate demand.
tags: uncountable
Forms: