Bouakez, Hafedh; Guillard, Michel; Roulleau-Pasdeloup, … - Départment d'économétrie et d'économie politique … - 2014
We study the effectiveness of public investment in stimulating an economy stuck in a liquidity trap. We do so in the context of a tractable new-Keynesian economy in which a fraction of government spending increases the stock of public capital subject to a time-to-build constraint. Public...