JOURNAL OF BEIJING UNIVERSITY OF AERONAUTICS AND A ›› 2010, Vol. 23 ›› Issue (4): 68-71.

• 论文 • Previous Articles     Next Articles

A Research on the Efficiency of Positive Financial Policy

WU Hao, CUI Zhi-chao   

  1. School of Economics and Management, Beijing University of Aeronautics and Astro nautics, Beijing 100191, China
  • Received:2009-02-17 Online:2010-08-20 Published:2010-10-14

Abstract:

With regard to the effect of government debt on household consumption, there is a sharp contrast between the "Keynesian1" view and the "Ricardian" view. Thi s paper uses econometric methods to study the efficiency of positive financial p olicy in China by testing the feasibility of both "Keynesian" and "Ricardian " views on government debt. The findings show that at China-s current stage of economic restructuring, positive financial policy can promote the growth of hous ehold consumption, the Ricardian Equivalence theorem is not tenable, but it stil l has some guiding significance on the control of financial policy and the scale of government debt.

Key words: Ricardian Equivalence, government debt, efficiency

CLC Number: