The study looked at how government spending affects the economy in Costa Rica. They used a method called Structural Vector Autoregression to analyze the impact of government spending on Gross Domestic Product (GDP) and the real exchange rate. The researchers found that changes in government consumption don't have a big effect on GDP and the real exchange rate. They also discovered that if the government reduces spending rigidity, it could boost the relationship between GDP and government expenditure, helping to stimulate economic activity.