Fiscal Policy over the Real Business Cycle: A Positive Theory

Marco Battaglini, Stephen Coate

NBER Working Paper No. 14047
Issued in May 2008

---- Acknowledgments ----

We thank Andrea Civelli and Woong Yong Park for outstanding research assistance. For helpful comments, we also thank Ulrich Muller, Christopher Sims, Ivan Werning and seminar participants at Georgetown, Johns Hopkins, ITAM, University of Miami, NBER, Princeton, the LAEF conference at UCSB, Simon Fraser, the X Workshop in International Economics and Finance at Universidad Torcuato Di Tella, and York University. 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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