Trimborn, Timo; Strulik, Holger - Verein für Socialpolitik - VfS - 2011
fiscal stimulus slows down economic recovery from recession in the medium-run. We discuss the slowdown from recovery w ….r.t. alternative assumptions about the size and persistence of the initial shock (severity of the recession), the assumed power of the … similar independent from whether a recession was caused by an efficiency wedge (input-financing frictions) or a labor wedge …