Agnello, Luca; Furceri, Davide; Sousa, Ricardo M. - In: Economic Modelling 34 (2013) C, pp. 15-24
We develop a novel empirical approach to assess the effect of discretionary fiscal policy on private spending …. We find that an expansion in discretionary fiscal policy boosts growth in the short term, but is detrimental in the … medium term. In addition, the empirical findings suggest that the effect of discretionary fiscal policy on private spending …