Junaid Kamal

TL;DR: In this article , the authors examined the Ricardian equivalence hypothesis for Pakistan using a vector error-correction model and found support for the idea that wealth does not increase as government debt increases; hence it proves the fact that economic agents are rational actors and foresee current expansionary actions of the government that result in accumulation of debt as the present value of future taxation that they have to pay and not an increase in wealth.