Debt and nonlinear fiscal policy: evidence from the states
AbstractEvidence from a half century of experience by states identifies nonlinearities in the effects of debt and fiscal policy on growth. Effects are Keynesian for low to moderate levels of debt and stimulus but anti Keynesian for sufficiently high levels of debt or stimulus. Results are broadly consistent with models by Barro (1999), Judd (1987), and others.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39731.
Date of creation: 06 Jun 2012
Date of revision:
debt; fiscal policy; nonlinear; growth; Keynes;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
- A10 - General Economics and Teaching - - General Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-FDG-2012-07-08 (Financial Development & Growth)
- NEP-MAC-2012-07-08 (Macroeconomics)
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