Trend growth and the dynamic effects of government spending

The paper studies the macroeconomic effects of government spending shocks in an economy characterized by positive trend growth. It shows that the lower is the trend growth rate the less inflationary are government spending shocks and vice versa. Moreover, on impact output is higher but exhibits less...

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Bibliographic details
Volume: 1678
Main Author: Tesfaselassie, Mewael F
Format: Paper
Language: English
Place of publication: Kiel Kiel Institute for the World Economy (IfW) 2011
published in: Kiel Working Paper Vol. 1678
Data of publication: 2011
Online Access: Fulltext
Database: EconStor
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