Empirical estimates of the effects of fiscal policy tend to be relatively imprecisely estimated. We contend that this is largely due to inadequately controlling for the information set of agents. Given the large increases in government spending on the horizon in the U.S., it is imperative that...

Big government may be coming back into fashion. Public spending in Britain – especially on services such as health, education and transport – is on the increase. But how likely is it that more spending will result in better services?In this new Yearbook, Peter Warburton assembles evidence...