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We present a political economy theory of growth in which the government affects the growth rate both directly through public investments in infrastructure, and indirectly through the effec...
Fiscal Policy over the Real Business Cycle: A Positive Theory
fi scal policy business cycle budget
2014/3/12
This paper explores the implications of the political economy model of Battaglini and Coate (2008)
for the behavior of fiscal policy over the business cycle. The model predicts that fisca...