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The role of expenditure duration in fiscal multipliers over the business cycle

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Abstract Projects funded by the Department of Transportation that are authorized to begin construction during periods of slack are completed more quickly than during expansions. The results suggest fiscal multipliers… Click to show full abstract

Abstract Projects funded by the Department of Transportation that are authorized to begin construction during periods of slack are completed more quickly than during expansions. The results suggest fiscal multipliers of authorized funds may vary over the business cycle.

Keywords: fiscal multipliers; expenditure duration; role expenditure; business cycle

Journal Title: Economics Letters
Year Published: 2020

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