Are Government Bonds Net Wealth Some Empirical Evidence英文文献资料.docVIP

Modern Economy, 2011, 2, 412-415 doi:10.4236/me.2011.23045 Published Online July 2011 (http://www.SciRP.org/journal/me) Are Government Bonds Net Wealth? Some Empirical Evidence Tito Belchior Silva Moreira , Geraldo da Silva e Souza , Fernando Ant?nio Ribeiro Soares 1 2 3 1 Department of Economics, Catholic University of Brasília, Brasília, Brazil Department of Statistics, University of Brasilia, Brasília, Brazil Brazilian Ministry of Defense, Brasília, Brazil 2 3 E-mail: tito@pos.ucb.br, geraldosouza@unb.br, fernando.a.r.soares@ Received March 3, 2011; revised April 25, 2011; accepted May 5, 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. Keywords: Public Debt, Economic Growth, Ricardian Equivalence 1. Introduction In the same line of the second approach presented above, it is possible to test the impact of public debt on economic growth. Araujo e Martins model (Reference [6]), a straightforward extension of [7-9], Martins (1980, 1994, 1995), relying on Samuelson’s pioneering OLG model [10], is the proper framework for the analysis. Based on [6], we investigate a possible association be- tween public debt and economic growth, in the context of the AK model. We note here that [6] concluded that an increase in government debt negatively affects the rate of growth of the capital stock and, consequently, negatively affects the economic grow