High debt and limited fiscal space demand fiscal consolidation. However, cutting spending should not compromise long-term growth. Public investment should be protected, avoiding wasteful projects. Cuts in public consumption must be cautious to maintain the quality of infrastructure and of service delivery. Analyzing data from 112 countries (1960-2019), we find that both public investment and consumption boost long-term output. In low- and high-income...
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INFORMATION
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2024/10/01
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Rapport
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194075
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1
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2024/12/16
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Disclosed
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Public Investment, Government Consumption, and Growth : A Long-run Analysis