This paper analyzes the dynamic impact of discretionary governmentconsumption purchases on private demand. Using a panel of 132 countries from1960 to 2008, we find that while discretionary changes in government consumption lead to crowding-in effects in the short run, crowding-out effects take over in the medium run. In addition, we also find that both short-term crowding-in and mediumtermcrowding out effects are amplified once we control for periods of crisis.
|Numero di pagine||22|
|Rivista||Open Economies Review|
|Stato di pubblicazione||Published - 2013|
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