Ricardian Equivalence or the Indifference Between Tax and Debt Financing

Ricardian equivalence is a topic which has attracted much attention in the economic journals in the past couple of decades. Economic theory states that a tax cut gives the public a greater disposable income. Thus, the public will consume more, and the economy will grow. However, if the tax cut is financed by debt, the public will perceive that a future tax increase is inevitable to pay off the debt. Under this scenario, the public will not consume more. Instead, they will save all of their increased disposable income in anticipation of the future tax increase. Ricardian equivalence then is that the value of the tax cut is equal to the present value of the future tax increase. This paper tests Ricardian equivalence within the context of the Patinkin framework, using a single reduced-form equation. A regression analysis is performed on the interest rate using real GNP, real tax receipts, additional real public debt, the change in the price level, real government expenditures, and real money supply. This study finds that the data used for the time period 1975:1 to 1991:4 are consistent with that of Ricardian equivalence

Start-Up REsources and Entrepreneurial Discontinuance: The Case of Nascent Entrepreneurs

Built on the resource-based view of the firm, this study addresses two major research questions: (1) what resources are salient in entrepreneurial discontinuance; (2) To what extent, does the impact of resources on the odds of discontinuance vary across the nature of startup between high technology and non-technology? These questions are examined using 830 nascent entrepreneurs from the Panel Study of Entrepreneurial Dynamics (PSED). Overall, we find that not all resources are equally salient, especially when comparing technology-based and non-technology-based nascent entrepreneurs. With the exception of education and managerial experience, human capital has limited influence on discontinuance. Our results lend no support for our social capital hypothesis. Financial capital significantly decreases the odds of discontinuance. Additionally, the odds of discontinuance of technology-based and non-technology-based nascent entrepreneurs are affected by a different set of resources. Implications and future research directions are proposed

Prospectus, March 12, 1986

https://spark.parkland.edu/prospectus_1986/1007/thumbnail.jp

Prospectus, March 25, 1987

https://spark.parkland.edu/prospectus_1987/1009/thumbnail.jp

Prospectus, November 11, 1987

https://spark.parkland.edu/prospectus_1987/1024/thumbnail.jp

Prospectus, March 11, 1987

https://spark.parkland.edu/prospectus_1987/1008/thumbnail.jp

Prospectus, March 4, 1987

https://spark.parkland.edu/prospectus_1987/1007/thumbnail.jp