to higher growth (the normal reaction). The same shock can produce voracious behavior and lower growth when faced by poor …

standard neoclassical growth model with US data and assume that an exogenous shock has driven aggregate output far below steady … the generality of this result w.r.t. size and persistence of the shock, size of the government spending multiplier, and … spending on economic recovery. -- deficit spending ; government spending multiplier ; economic recovery ; economic ; growth. …

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 …