재정정책과 국채의 중립성 = Fiscal Policy and Debt Neutrality

다국어 초록 (Multilingual Abstract)

This paper attempts to analyze the well-known `Debt Neutrality Hypothesis(DNH)` called Ricardian equivalence. revived by Barro(1974), from theoretical and empirical perspectives. The purpose of this paper is as follows. First, to discuss the theoretical framework underlying the strict DNH and investigate effects of relaxing the basic classical assumptions, and formally derive policy implications of the DNH from the results. Second, to briefly review the [revious empirical results of the DNH. We can see from the debate on the DNH that trying to explain whether Debt neutrality is true can yield a deeper understanding about the effects of government debt on the economy. Finally, to empirically test the relevance of the DNH in Korea by analyzing the significance of financial variables instead of the usual consumption function because the issue may be ultimately assessed on empirical grounds. Toward this end, standard F-tests were run by regressing three critical Korea time series data on their won lagged values, lagged value of changes in reserve money(money stock), and lagged values of changes in government bond. In the empirical study of the Korean annual data from 1972 to 2000. on balance, the estimation indicated that there is some support for Debt neutrality in Korea. In this context, although we had used a relatively simple approach to analyze the DNH. we can easily find that our provisional empirical findings do not appear consistent with the conventional view of the deficit financing that government bonds are net wealth.