Agnello, Luca; Furceri, Davide; Sousa, Ricardo - In: Open Economies Review 24 (2013) 1, pp. 79-100
This paper analyzes the dynamic impact of discretionary government consumption purchases on private demand. Using a panel of 132 countries from 1960 to 2008, we find that while discretionary changes in government consumption lead to crowding-in effects in the short run, crowding-out effects take...