Definitions from Wiktionary (Ricardian equivalence)
▸ noun: (economics) The idea that consumers are forward-looking and so internalize the government's budget constraint when making their consumption decisions, so that, for a given pattern of government spending, the method of financing such spending does not affect agents' consumption decisions, and thus does not change aggregate demand.
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▸ noun: (economics) The idea that consumers are forward-looking and so internalize the government's budget constraint when making their consumption decisions, so that, for a given pattern of government spending, the method of financing such spending does not affect agents' consumption decisions, and thus does not change aggregate demand.
Similar:
Homo reciprocans,
potato paradox,
Coase theorem,
Gibson's paradox,
Harrod-Johnson diagram,
general equilibrium,
equivalence principle,
relativity,
Easterlin paradox,
reciprocitarian,
more...
Opposite:
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