Mühlenweg, Leonard; Gerling, Lena - 2023
investment, at the subnational level in Europe. Building on the notion of the deficit bias, we suspect that in the presence of … expenditure by up to 1.28 percent, while investment declines by more than 4 percent. The results imply that more stringent fiscal … rules lead to a disproportionate reduction in public investment as compared to overall expenditure. …