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Changes Fiscal Policy (Alesina and Ardagna)

In this paper, Alesina and Ardagna analyse the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. With a regression analysis, they confirm that fiscal stimuli based upon tax cuts are more likely to increse growth than those based upon spending increases.


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