Purpose The purpose of this paper is to provide more reliable estimates of the relationship
between government spending and economic growth in the European Union (EU) during …

We estimate local fiscal multipliers and spillovers for the United States using a rich dataset
based on US Department of Defense contracts and a variety of outcome variables relating to …

This article shows that equilibrium unemployment dynamics can significantly increase the
efficacy of fiscal policy. In response to a shock that brings the economy into a liquidity trap …

In the aftermath of the consumer debt–induced recession, policymakers have questioned
whether fiscal stimulus is effective during periods of high consumer indebtedness. This study …

We evaluate the effects of inequality, fiscal policy, and COVID19 restrictions in a model of
economic slack with potentially rigid capital operating costs. Rich households satiate their …

Credit markets typically freeze in recessions: access to credit declines, and the cost of credit
increases. A conventional policy response is to rely on monetary tools to saturate financial …

Government expenditure on education has attracted much attention because it plays an
important role in the economic development. The question is whether government …

This paper proposes a new mechanism that can explain persistent economic slack. The
theory shows that when producers face negligible marginal costs and desired spending is …

Most macroeconomic models imply that increases in government spending cause interest
rates to rise, but empirical evidence from the US generally fails to support this prediction. We …

The dynamic of local government spending on education, health care, and infrastructure in
the region shows an interesting phenomenon in the last decade. Despite the fact that budget …