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formation. Models with an extensive investment margin, i.e. endogenous firm and product entry, have difficulties explaining …
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exogenous cross-sectional variation to identify the casual effect of stimulus investment on the change in unemployment on the … large part of all investment was predetermined by the number and size of schools in a county which are plausibly exogenous … to local economic conditions. Thus a large part of all investment was predetermined by the number and size of schools in …
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Increases in government spending trigger substitution effects - both inter- and intra-temporal - and a wealth effect. The ultimate impacts on the economy hinge on current and expected monetary and fiscal policy behavior. Studies that impose active monetary policy and passive fiscal policy...
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Anticipated stimulus policies enacted perhaps in response to a crisis can motivate precautionary behaviour during the preceding expansion. Ex post stimulus can be ex ante prudential. Prudential fiscal stimulus both speeds up economic recoveries, and prevents crises from occurring in the first...
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