Davide Furceri

Davide Furceri is economist at the International Monetary Fund. He holds a PhD in Economics from the University of Illinois and a doctoral degree in Regional Economics from the University of Palermo. He previously worked as economist at the Fiscal Policy Division of the European Central Bank and at the Organization for Economic Co-operation and Development. He extensively published in international journals in the area of macroeconomics, fiscal policy and international macroeconomics. He has also been invited to different forums across countries for lectures or presentations on fiscal and macroeconomic issues, also related to the recent financial crisis.

Papers Published in World Economics:

Does Government Spending Crowd Out Private Consumption and Investment?

This paper reviews the theoretical and empirical literature on the existence of crowding-out versus crowding-in effects. It also provides some new empirical evidence on the effect of changes in government spending on private consumption and investment by using a panel of 145 countries from 1960 to 2007. We find that government spending crowds out both private consumption and investment. In addition, we show that this result does not depend on the phase of the business cycle, but differs substantially among regions. We also find that the crowding-out effects are larger in the event of expansionary changes.

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