01765cas a2200253 a 4500 AALejournalIMF006844 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455210718 1018-5941 BD-DhAAL BD-DhAAL Mukherjee, Sanchita. Private Sector Consumption and Government Consumption and Debt in Advanced Economies : An Empirical Study / Sanchita Mukherjee, Rina Bhattacharya. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper explores the hypothesis that the propensity to consume out of income varies in a non-linear fashion with fiscal variables, and in particular with government debt per capita. Using data from eighteen OECD countries the paper examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian behavior as government debt reaches high levels and as uncertainty about future taxes increases. Our results provide support for this hypothesis, and also suggest that private and government consumption are substitutes in the household utility function. Mode of access: Internet Bhattacharya, Rina. IMF Working Papers; Working Paper ; No. 2010/264 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/264/001.2010.issue-264-en.xml IMF e-Library