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Debt and other determinants of fiscal policy useKeywords: Fiscal Policy , Debt , Public Trust , Development Abstract: Using a measure of variation in real government expenditure for the period 1998through 2008, this paper employs cross country regression analysis to look at theeffect of public debt, both singularly and when adjusting for control variables, onfiscal policy usage. The empirical findings are consistent with the hypothesis thathigher public debt tends to lessen the use of fiscal policy.
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