times but no rules for using them at bad times; and (iii) a possible bias to over-accumulation of resources in SWFs without …

We empirically assess whether a usually expected negative response of private consumption and private investment to a … there is a fiscal consolidation; iii) there is a crowding-in effect for private investment, from fiscal contractions …

. The effect of changes in fiscal policy on output depends on the composition: cutting public investment has a larger effect …-term output effects, but here, too, composition matters: fiscal consolidations based on reducing public investment have the … public investment cuts. These findings suggest that the negative impact on growth can be mitigated through the design of …

In emerging markets, unexpected public expenditure reductions increase firm-level investment, which quickly surpasses … pre-shock levels after a temporary contraction, owing to a decline in financing costs. Investment’s recovery is …: reductions in public consumption (vis-a-vis public investment) yield larger private investment contractions on impact but result …