Government Investment and the European Stability and Growth Pact

Marco Bassetto, Vadym Lepetyuk

NBER Working Paper No. 13200
Issued in June 2007

---- Acknowledgements -----

We thank Gadi Barlevy, Mariacristina De Nardi, Craig Furfine, Leslie McGranahan, and Benoît Mojon for useful comments, Anna Lööf for help with the data, and the National Science Foundation for its support through grant #0419771. This paper was prepared for Economic Perspectives, a publication of the Federal Reserve Bank of Chicago. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Chicago or the Federal Reserve System. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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