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This study examines whether differences in public sector efficiency are associated with diverging effects of public investment on growth. At first stage, we estimate public investment multipliers for each country of the European Union (EU). Their size varies considerably across countries. Then...
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investment multiplier is likely to be much higher than what has been assumed by the policy makers and much higher that the … consumption multiplier. This points out that the consolidation should be accompanied by increased public investment …
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