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Government spending and the Great Recession

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  • H. Atesoglu

Abstract

In this paper government spending during the Great Recession is examined. A measure of full-employment government spending was estimated by representing the economy with a Keynesian model. The empirical evidence reveals that government spending has been systematically below its full-employment level during the Great Recession and through 2012. Rather than a runaway expansion in government spending, findings indicate a government spending shortfall from the first quarter of 2008 through the first quarter of 2012.

Suggested Citation

  • H. Atesoglu, 2013. "Government spending and the Great Recession," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 35(4), pages 529-536.
  • Handle: RePEc:mes:postke:v:35:y:2013:i:4:p:529-536
    DOI: 10.2753/PKE0160-3477350402
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