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» Economics » Financial science » Topics begins with P » Peacock Wiseman hypothesis

Page modified: Wednesday, July 13, 2011 03:15:24

The Peacock Wiseman hypothesis (also level shifting effect) is an attempt at explanation for the sequential rise of the state ratio in the last decades in many states of the earth.

Core thought

Peacock and Wiseman assume in social crisis situation (wars among other things) the resistance of the population against a tax increase is small and thus the state ratio. As soon as now the crisis situation is terminated, the population got accustomed to the high deliveries. The state ratio is only conditionally again reduced. The process of the state ratio in the Zeitverlauf would have therefore the form of stairs (pseudo trend).


The hypothesis covers itself only conditionally with the experience. Actually one could observe a continuous process of the state ratio and no stair-like. In crisis periods there was often only a short term deviation and after their end a return to the trend. The hypothesis is satisfying few therefore.

Articles in category "Peacock Wiseman hypothesis"

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» Peacock Wiseman hypothesis
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