model. We find that i) government spending increases output and induces a simultaneous decline of investment and the current … account, but does not affect consumption; ii) the responses of output and investment are smaller in more open economies, while … simultaneous decline in investment and the current account. …

been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does … do so could result in the world economy being stuck in "midstream," threatening the sustainability of the recovery. …

Business support policies designed to raise productivity and employment are common worldwide, but rigorous micro … positive program treatment effect on employment, investment and net entry but not on TFP. OLS underestimates program effects …,300 suggesting that in some respects investment subsidies can be cost effective. …

fixed investment that became excessive and proved to be unsustainable, while the productivity acceleration helps to account … productivity growth linked to the delayed effects of previously invented 'general purpose technologies' stimulated an increase in …-01 collapse of investment and the stock market proves that good public policy matters, going beyond the narrowly defined …

, and their contribution remains significant for a horizon up to five years. A permanent shock – that we interpret as a … technological shock – dominates the variation of all variables at longer horizons. In response to this shock, net foreign … liabilities, net output and consumption all increase – consistent with the effect of productivity gains raising domestic return to …