Bernardini, Marco; Peersman, Gert - CESifo - 2015
Using state-dependent local projection methods and historical U.S. data, we find that government spending multipliers … consumption and investment in low-debt states, resulting in multipliers that are significantly below one. Conversely, in periods … of private debt overhang, there is a strong crowding-in effect, while multipliers are much larger than one. In high …