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Ricardian Equivalence, the Italian Fiscal Tradition and Western Australia’s Government Net Debt

McLure, Michael

Description

This paper uses the discussion within the Italian fiscal tradition on the supposed Ricardian equivalence between debt and taxation to give context to the Western Australian (WA) Government’s growing net debt from the late phase of the ‘millennium boom’. It is suggested that WA’s experience, in which growth in net debt has been driven significantly by growth in general government expenses, accords best with Pareto’s main reason for rejecting Ricardian equivalence. The WA Government did have a...[Show more]

dc.contributor.authorMcLure, Michael
dc.date.accessioned2020-09-11T01:54:23Z
dc.date.available2020-09-11T01:54:23Z
dc.identifier.issn13221833
dc.identifier.urihttp://hdl.handle.net/1885/209954
dc.description.abstractThis paper uses the discussion within the Italian fiscal tradition on the supposed Ricardian equivalence between debt and taxation to give context to the Western Australian (WA) Government’s growing net debt from the late phase of the ‘millennium boom’. It is suggested that WA’s experience, in which growth in net debt has been driven significantly by growth in general government expenses, accords best with Pareto’s main reason for rejecting Ricardian equivalence. The WA Government did have a strategy to maintain structural fiscal balance over the long term, but the targets or rules associated with that strategy were abandoned and replaced by weaker rules. It is argued that, if those rules were more ‘constitutional’ in character, then the WA Government’s net debt would not have blown out in the manner that it did.
dc.language.isoen_AU
dc.publisherANU Press
dc.rightsAuthor/s retain copyright
dc.sourceAgenda - A Journal of Policy Analysis and Reform
dc.titleRicardian Equivalence, the Italian Fiscal Tradition and Western Australia’s Government Net Debt
dc.typeJournal article
local.identifier.citationvolume24
dc.date.issued2017-11
local.publisher.urlhttps://press.anu.edu.au/
local.type.statusMetadata only
local.bibliographicCitation.issue1
local.bibliographicCitation.startpage5
local.bibliographicCitation.lastpage20
local.identifier.doi10.22459/AG.24.01.2017.01
dcterms.accessRightsOpen Access via publisher website
CollectionsANU Press (1965-Present)

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