should intervene in the business cycle. Following Ramey (2011b), we include expectations held by consumers and firms into the … findings also underscore the need to account for expectations, as failing to do so leads to significant misinterpretation of …

durable spending. Possible channels for these effects include more optimistic macroeconomic expectations and higher trust in …

durable spending. Possible channels for these effects include more optimistic macroeconomic expectations and higher trust in …

durable spending. Possible channels for these effects include more optimistic macroeconomic expectations and higher trust in …

breaks, the study finds evidence of a cointegration relation between the government revenues and spending. The results did … difficulties in financing its debts in the long run. Lastly, the short run and long run Granger causality results, while providing …

According to the expectations channel, a fiscal consolidation may give rise to less contractionary, or even … design a laboratory experiment to study the conditions under which the expectations channel operates. Our results indicate … consumption, which supports the expectations channel. We also find that the expectations channel is more pronounced if the fiscal …

of panel unit root and Pedroni test of panel cointegration. The tests are applied to the relationships, in terms of GDP …

cointegration analysis, both country and panel based, controlling for endogenous breaks. Results notably show: lack of cointegration … for Australia, Belgium, Germany, Ireland, Netherlands and the UK; Granger causality from government debt to the primary …