Lowering 2000-2006 Debt/Tax ratio from the average level of low-income countries (5.94) down to the average level of the Euro (SWEAP) countries (1.97) increasing approximately a size of stimulus %GDP in 2009-2011 by 2.78 Note: The fi scal space is calculated from public debt as of 2006 and 2000-2005 average tax/GDP. Standard errors are in parentheses.
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Aizenman et al. (2012) studied this question.
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