Kirchner, Markus; Cimadomo, Jacopo; Hauptmeier, Sebastian - European Central Bank - 2010
This paper provides new evidence on the effects of government spending shocks and the fiscal transmission mechanism in … impact of government spending shocks using time-varying structural VAR techniques. The results show that the short …-run effectiveness of government spending in stabilizing real GDP and private consumption has increased until the end-1980s but it has …