Abstract Using a newly assembled rich dataset at the regional level, this paper provides novel empirical evidence on effects of fiscal policy in Eurozone. Our baseline estimates reveal government spending relative output multiplier around 2, an employment 1.4, and cost per job created approximately €30,000. Moreover, we find that stimulus leads to significant increase private investment, produc...

Executive summary This paper discusses volatility in general government spending in EU countries. While this volatility has on average declined over time when measured by its standard deviation, a large cross-country variation in the degree of volatility can be observed. Estimates covering all EU-27 countries indicate that high volatility tends to be associated with fast growing government spen...

G the recent concern on “big governments” and rising budget deficits in the United States and European nations, there has been a fundamental economic debate on the proper boundary and role of governments in a society. Inspired by this debate, we study the relationship between information technology (IT) and government size. Drawing on a broad range of the literature from multiple disciplines su...

23 DO CAMPAIGN FINANCE REGULATIONS affect how citizens view their government? This question is both theoretically important and policy-relevant. A central argument for more restrictive campaign finance laws at both the state and federal levels is that tighter rules will restore trust in the government and make citizens once again feel that they can affect the political process. Supreme Court de...

We develop a model of pork-barrel politics in which a government offi cial tries to improve her re-election chances by spending on targeted interest groups. The spending signals that she shares their concerns. We investigate the effect of such pandering on the public deficit. Pandering makes the deficit worse if either the offi cial’s overall spending propensity is known, or if it is unknown bu...

The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that systematically reduces spending below trend over time, in response to rising public liabilities. Accounting for such spending ...

In 2007, U.S. health care spending growth slowed to its lowest rate since 1998, increasing 6.1 percent to $2.2 trillion, or $7,421 per person. The health care portion of gross domestic product reached 16.2 percent, up from 16.0 percent in 2006. Slower growth in 2007 was largely attributed to retail prescription drug spending and government administration. With the exception of prescription drug...

This paper contributes to the on-going debate over how government form affects spending. It broadens the previous focus on elected versus professional management to address the separation of legislative and executive powers. The empirical results reveal spending differences between governments with separation of powers and those with unified powers only for Southern counties of the US. In addit...

abstract the present study attempted to experimentally analyze the effect of fiscal illusion in the form of flypaper effect on spending demand levels of provincial governments in iran. to this aim, theoretical foundations and literature review were presented, and then the model used for investigation was specified. finally, using time series data for provinces of iran during 2000-2013 estimatio...