According to the Ricardian perspective, increases in the government deficit should be matched by increases in private saving and vice versa. Private and government savings rates for the United States are shown in Figure 14.20 “US Government and Private Savings Rates”.  The private saving rate equals private saving as a percentage of real GDP. The government saving rate essentially equals the government surplus as a percentage of GDP (there are some minor accounting differences that we do not need to worry about). Figure 14.20 US Government and Private Savings Rates
There is some evidence that private and government saving move in opposite directions, as suggested by the Ricardian view. Source: Calculations based on Economic Report of the President, Table B-32. Private savings increased from the 1980 to 1985 period and decreased thereafter. Large deficits emerged during the early 1980s (negative government savings). At this time, there was an increase in the private savings rate. The government savings rate increased steadily during the 1990s, and, during this period, the private savings rate decreased. These data are therefore more supportive of the Ricardian view: private and government savings were moving in opposite directions. Turning to international evidence, an Organisation for Economic Co-operation and Development study that examined 21 countries between 1970 and 2002 found that changes in government deficits were associated with partially offsetting movements in private saving. On average, the study found that changes in private savings offset about one-third to one-half of changes in the government deficit.  Figure 14.21 “Government and Private Savings Rates in Spain and Greece” and Figure 14.22 “Government and Private Savings Rates in France and Ireland” reproduce some figures from this study. In Spain and Greece, for example, we see patterns of savings that are consistent with the Ricardian perspective: private savings and government savings move in opposite directions. By contrast, the pictures for Ireland and France show little evidence of such an effect.
Why Work with Us
Top Quality and Well-Researched Papers
Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.
Professional and Experienced Academic Writers
For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.
Free Unlimited Revisions
Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.
Prompt Delivery and 100% Money-Back-Guarantee
All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.
Original & Confidential
Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.
24/7 Customer Support
Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.
It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.
Admission Essays & Business Writing Help
A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.
Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.
If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.