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By Habits Or Choice? Discretionary Spending In The Oecd, Riccardo Fiorito
By Habits Or Choice? Discretionary Spending In The Oecd, Riccardo Fiorito
riccardo fiorito
Only 1/3 of Government spending in the Oecd countries results from choice rather than from inertia. This result stems from Coricelli-Fiorito (21013) where a measure of discretion is provided. A major implication is that most multiplier analysis of public spending is unreliable since it typically refers to variables often reflecting past habits or business cycle implications instead of occasional and intentional policy controls.