The theoretical and empirical literature has provided in the last year extensive analysis on the effect of government spending on economic activity. Despite this, there is no consensus on the effects of government spending on private consump-tion and investment (both in the short and in the long term) neither from a theoretical nor from an empirical point of view.
Furceri, D., Sousa, R. (2011). The Impact of Government Spending on the Private Sector: Crowding-out versus Crowding-in Effects. KYKLOS, 64(64), 516-533 [10.1111/j.1467-6435.2011.00518.x].
The Impact of Government Spending on the Private Sector: Crowding-out versus Crowding-in Effects
FURCERI, Davide;
2011-01-01
Abstract
The theoretical and empirical literature has provided in the last year extensive analysis on the effect of government spending on economic activity. Despite this, there is no consensus on the effects of government spending on private consump-tion and investment (both in the short and in the long term) neither from a theoretical nor from an empirical point of view.
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