Debt and nonlinear fiscal policy: evidence from the states

Jo Anna Gray and Joe A. Stone

MPRA Paper from University Library of Munich, Germany

Abstract: Evidence 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.

Keywords: debt; fiscal policy; nonlinear; growth; Keynes (search for similar items in EconPapers)
JEL-codes: A10 B22 E62 (search for similar items in EconPapers)
Date: 2012-06-06
New Economics Papers: this item is included in nep-fdg and nep-mac
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39731

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