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Investment tax incentives and their big time-to-build fiscal multiplier

Bermperoglou, Dimitrios; Deli, Yota; Kalyvitēs, Sarantēs - 2019

This paper studies how investment tax incentives stimulate output in a medium-scale DSGE model, which allows for a variety of fiscal financing mechanisms. We find that the horizon following a positive shock in investment tax incentives is crucial. The shock is highly expansionary in the long...

Persistent link: https://www.econbiz.de/10012137483