This paper provides the explicit expression of investment facing a binding debt ceiling and the explicit expression of … of the parameterizations of these Lagrange multipliers used in Euler investment equations tests during the 1990's. …

in investment and in the current account, in line with em- pirical evidence, only if the traded sector is more capital …

model. We find that i) government spending increases output and induces a simultaneous decline of investment and the current … account, but does not affect consumption; ii) the responses of output and investment are smaller in more open economies, while … simultaneous decline in investment and the current account. …

responsive, investment is crowded out, the drop in savings drives the current account into deficit and government spending …

investment expenditure is crowded-out by public spending in the short-run. In this contribution, we address this empirical fact … accommodating the observed negative relationship between investment and government expenditure. Our numerical experiments point out … fiscal expansion crowds-out real consumption by a smaller amount and investment by a larger one, while the current account …

drop in investment and in the current account, in line with empirical evidence, only if the traded sector is more capital …