Mountford, A.W.; Uhlig, H.F.H.V.S. - Tilburg University, Center for Economic Research - 2002
:5, and that a surprise tax increase has a contractionary effect on output, consumption and investment.Our results differ from … shock is not, that government spending shocks crowd out both residential and on-residential investment but do not reduce … consumption, that a deficit spending cut stimulates the economy for the first 4 quarters but has a low median multiplier of 0 …