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Stimulusgate

Sinclair Davidson
Agenda: A Journal of Policy Analysis and Reform
Vol. 18, No. 1 (2011), pp. 5-11
Published by: ANU Press
Stable URL: http://www.jstor.org/stable/43200616
Page Count: 7
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Stimulusgate
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Abstract

The Australian government's 2010 Budget Papers present econometric evidence that purports to show a positive and 'highly statistically significant' relationship between the size of stimulus spending and subsequent economic growth in a sub-set of G20 countries. The analysis concluded that those countries, such as Australia, that adopted early and large fiscal stimulus packages had subsequently outperformed those that had not done so. This analysis, however, turns on an untenable and substantial truncation of the available sample, and suggests a failure of qualitycontrol processes with Treasury.

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