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| Volume 8, No. 2,
August 2009 |
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Public Spending and the
Macroeconomy: Evidence from Developing and Developed Countries |
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| Magda
Kandil |
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International Monetary Fund, Western
Hemisphere Department, U.S.A. |
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| Abstract |
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Using annual data,
this paper studies the time series evidence regarding the
effectiveness of government spending. Crowding out appears more
prevalent in the face of variation in government spending in
advanced countries. Private consumption and inflation vary more
closely with government spending in developing countries. |
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Key words:
fiscal stimulus; crowding out; supply constraints;
developing and advanced countries |
| JEL
classification:
E61; E62; E63; E32; E21 |
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