Strulik, Holger; Trimborn, Timo - Center for European, Governance and Economic … - 2013
Most of the discussion about fiscal stimulus focuses on the multiplier of government spending on impact. In this paper … multiplier turns negative before spending expires. This means that aggregate output at the time of expiry of fiscal stimulus is … phase diagram analysis we prove that the aggregate capital stock at the time of expiry of fiscal stimulus is lower than it …