Households' Balance Sheets and the Effect of Fiscal Policy

Abstract

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The impact of unprecedented growth in public investment on stimulating the Indian economy

“…The research belongs to the strand of literature on the heterogeneous effects of government spending. This is a burgeoning field of study that includes, among others, research on the impact of interest rates on fiscal multipliers (Klein and Winkler, 2021;Ngo, 2021), fiscal effects of heterogeneity of households (Cantore and Freund, 2021;Andrés et al, 2022;Auclert et al, 2023;Guo et al, 2023), and impact of the consumption on GDP, employment, and private consumption in the Indian economy. The final section concludes.…”