This paper develops a two-country micro-theoretic model consistent with the Ricardian equivalence hypothesis. Specifically, tax increases used to retire government debt will not affect private spending or the current account balance. However, increases in government spending, regardless of the...

This paper discusses a method of deriving the univariate ARIMA process followed by a time series of rational forecasts y(superscript "e") of a series y, given the ARIMA process followed by y. The method suggests examination of the empirical ARIMA process followed by y(superscript "e") as a test...