Salvatore Dell’Erba; Sola, Sergio - International Economics Section, The Graduate Institute … - 2011
This paper reconsiders the long term effect of fiscal policy on interest rates using a real-time dataset of macroeconomic and fiscal variables in a panel of 17 OECD countries over the period 1989-2009. We show that, after controlling for cross sectional dependence using a Factor Augmented Panel,...
