Note on Ricardian equivalence

Discussions of the Ricardian equivalence concept have generally centered on the notion of a dynastic extended family in which the utility of each generation depends on its own consumption and on the utilities of its descendants. This paper shows that there are other reasons why we could observe the Ricardian result, either exactly or approximately. One reason is the capitalization of property taxes into property values. The other reason is that the bequest itself could be a variable in parents' utility functions.