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Estimation of the fiscal impact multiplier in reduced-form equations.

Belliveau, Stefan (2012): Estimation of the fiscal impact multiplier in reduced-form equations.

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Abstract

A simple approach to identify the influence of the federal government's consumption expenditures on economic activity using reduced-form equations is clearly presented and examined, using annual US data from 1929-2011. The conclusion from this analysis is that estimates from reduced-form equations can inform policy decision making.

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