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components. Consistent with theory, I estimate a government investment multiplier near zero and a government consumption … shocks have a much smaller fiscal multiplier than government consumption shocks. I test this prediction in a panel of OECD … multiplier of approximately 0.8. These findings suggest that fiscal stimulus packages which contain large government investment …
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This paper studies whether changes in the composition of public spending affect the macroeconomic consequences of fiscal consolidations. Based on a sample of 44 developing countries and 26 advanced economies during 1980-2019, results show that while fiscal consolidations tend to be on average,...
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