particular, there is likely to be a hump shaped response of output to a fiscal shock with maximum impact after impact and before …

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 …

.e., private investment and productivity growth. We mostly focus on a panel of 20 OECD economies from 1970 to 2009, although we … affects both aggregate investment spending and productivity growth, through distortions related to the size of the public …