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Based on neoclassical theory, cutting budget deficits has come to be seen as a principal way to increase long …
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consumption and the government spending multiplier, given that consumption and labor are somewhat complementary. -- Trend growth … ; price and wage staggering ; government spending multiplier …
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Distributed Lag (ARDL) approach. We provide evidence on the short‐term dynamics as well as the long‐run expenditure multiplier … effects on economic growth for the Greek economy over the period 1960–2014. We find that the size of the multiplier does not …
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This paper provides evidence that austerity shocks have long-run negative effects on GDP. Besides addressing the important gap in the growing fiscal research regarding the short time horizon of the estimations, this paper analyzes two other important assumptions made in the literature regarding...
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