Strulik, Holger; Trimborn, Timo - 2013 - First Version: February 2011, This Version: January 2013
Most of the discussion about fiscal stimulus focuses on the multiplier of government spending on impact. In this paper … we shift the focus to the multiplier at the end, i.e. to the period in which a deficit spending program terminates. We … multiplier turns negative before spending expires. This means that aggregate output at the time of expiry of fiscal stimulus is …
