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The effectiveness of fiscal policy in stimulating economic activity : a review of the literature

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Fiscal Multipliers and the State of the Economy.

Baum, Anja - 2012

Only a few empirical studies have analyzed the relationship between fiscal multipliers and the underlying state of the economy. This paper investigates this link on a country-by-country basis for the G7 economies (excluding Italy). Our results show that fiscal multipliers differ across...