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The book represents different Methodologies to check the validity of Ricardian Equivalence Hypothesis and its sources of deviation in case of Pakistan. The study used annual data for the period of 19732009. Engle & Granger and Johansen cointegration approaches are used to check the long run and short run dynamics among variables. Structural consumption function is estimated by using ordinary least square method and Euler equations are estimated by Generalized Method of Moment.The findings illustrate concentration towards the importance of fiscal policies in raising private consumption and controlling budget deficits, which are the prime goals of stabilization policies in Pakistan.
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