Ricardian equivalence for local government bonds: A utility maximization approach

We show that Ricardian equivalence holds for local public finance if and only if subnational units use property taxes. However, for other tax bases, the unique equilibrium has the same economic outcome as in models where districts may not issue debt.

MoreLess

Year of publication:	2010
Authors:	Hatfield, John William
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 107.2010, 2, p. 148-151
Publisher:	Elsevier
Subject:	Ricardian equivalence Federalism

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008551314