increase in government spending will reduce private consumption and investment significantly. Only a model that largely ignores …

multipliers. We find that a higher ratio of credit to households over GDP, a smaller share of government investment and a larger …

volatility); iv) subsidies (size); and v) government investment (volatility) have a sizeable, negative and statistically …

strong crowding-in effect associated to public investment, which have enhanced economic growth by boosting private investment …

Despite intense calls for safeguarding public investment in Europe, public investment expenditure, when measured in … temporary and permanent public investment shocks generate larger fiscal multipliers than exogenous increases in public … public consumption and a permanent fall in public investment, keeping thereby the overall level of public spending constant …