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dc.contributor.authorCORSETTI, Giancarlo
dc.contributor.authorMEIER, André
dc.contributor.authorMÜLLER, Gernot J.
dc.date.accessioned2016-03-11T16:52:21Z
dc.date.available2016-03-11T16:52:21Z
dc.date.issued2012
dc.identifier.citationThe review of economics and statistics, 2012, Vol. 94, No. 4, pp. 878-895
dc.identifier.issn0034-6535
dc.identifier.issn1530-9142
dc.identifier.urihttps://hdl.handle.net/1814/39769
dc.descriptionPosted Online November 9, 2012.
dc.description.abstractThe short-run effects of fiscal policy depend not only on current tax and spending choices, but also on expectations about future policy adjustment. While general equilibrium models typically restrict mediumterm adjustment to taxation, we highlight the importance of government spending dynamics. First, we provide time series evidence for the United States suggesting that an exogenous increase in government spending prompts a rise in public debt, followed over time by a reduction in spending below trend. Second, we show how expected spending reversals alter the short-run impact of fiscal policy in a new Keynesian model, bringing it closer in line with the evidence.
dc.language.isoen
dc.relation.ispartofReview of Economics and Statistics
dc.titleFiscal stimulus with spending reversals
dc.typeArticle
dc.identifier.doi10.1162/REST_a_00233
dc.identifier.volume94
dc.identifier.startpage878
dc.identifier.endpage895
eui.subscribe.skiptrue
dc.identifier.issue4


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