Beetsma, Roel; Giuliodori, Massimo; Klaassen, Franc - In: Journal of the European Economic Association 6 (2008) 2-3, pp. 414-423
We investigate the consequences of an increase in public spending for trade balances and budget deficits in the European Union, using a panel vector auto-regression approach. Whereas the literature tends to treat the trade balance/GDP ratio as a single variable, we include exports and imports as...