On the Effects of Government Spending Shocks in Developing Countries
AbstractTime series analysis of annual data for a sample of developing countries shows the allocation of government spending shocks, both positive and negative, between price inflation and output growth. Cross-country regressions evaluate determinants of the difference in the real effects of government spending shocks. If the real effects decrease, capacity constraints are more binding and if they increase, the elasticity of aggregate demand is larger with respect to the change in government spending. Cross-country regressions also evaluate the implications of government spending shocks on the difference in trend price inflation and output growth. The variability of government spending shocks decreases trend real output growth and increases trend price inflation across countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Oxford Development Studies.
Volume (Year): 33 (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CODS20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Magda E. Kandil & Hanan Morsy, 2010. "Fiscal Stimulus and Credibility in Emerging Countries," IMF Working Papers 10/123, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.