Government spending and the Great Recession

H. Atesoglu

Journal of Post Keynesian Economics, 2013, vol. 35, issue 4, 529-536

Abstract: In this paper government spending during the Great Recession is examined. A measure of full-employment government spending was estimated by representing the economy with a Keynesian model. The empirical evidence reveals that government spending has been systematically below its full-employment level during the Great Recession and through 2012. Rather than a runaway expansion in government spending, findings indicate a government spending shortfall from the first quarter of 2008 through the first quarter of 2012.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:35:y:2013:i:4:p:529-536

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DOI: 10.2753/PKE0160-3477350402

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