Is it real? The relationship between real deficits and real growth: new evidence using long-run data
Long-run data for the USA is used to examine whether the inflation adjustment of the government budget deficit as proposed by Eisner and Pieper makes a difference in assessing the impact of fiscal policy on economic growth. Using Vector Autoregressions (VAR) it is found that both the inflation adjusted and the unadjusted deficit exert a negative influence on real growth.
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Volume (Year): 2 (1995)
Issue (Month): 4 ()
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