Gonzalez-Hernandez, Ramon A.; Karayalcin, Cem - In: Journal of International Money and Finance 32 (2013) C, pp. 341-359
The paper studies the effects of fiscal policy in an integrated world economy. The setup is one with habit-forming endogenous rates of time preference and adjustment costs in investment. Most of the predictions of the model are in line with the recent empirical literature on fiscal policy. For...
