Please use this identifier to cite or link to this item:
https://doi.org/10.1093/ej/ueab046
DC Field | Value | |
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dc.title | Cyclical Government Spending : Theory and Empirics | |
dc.contributor.author | Roulleau-Pasdeloup, Jordan | |
dc.date.accessioned | 2021-07-02T03:55:59Z | |
dc.date.available | 2021-07-02T03:55:59Z | |
dc.date.issued | 2021 | |
dc.identifier.citation | Roulleau-Pasdeloup, Jordan (2021). Cyclical Government Spending : Theory and Empirics. The Economic Journal. ScholarBank@NUS Repository. https://doi.org/10.1093/ej/ueab046 | |
dc.identifier.issn | 00130133 | |
dc.identifier.issn | 14680297 | |
dc.identifier.uri | https://scholarbank.nus.edu.sg/handle/10635/193060 | |
dc.description.abstract | <jats:title>Abstract</jats:title> <jats:p>This paper shows that part of what is usually labelled discretionary government spending actually varies systematically over the cycle. I exploit the pervasive gap between OLS and 2SLS local government spending multipliers to estimate how cyclical the systematic part of government spending is. Estimating a structural open economy New Keynesian model on U.S. state level data, I find that when employment decreases by $1\%$, the systematic component of government spending decreases by $0.23\%$. I also find that the empirical specification in Nakamura & Steinsson (2014) does a good job in recovering the true impact multiplier effect, but that it overestimates the long-run cumulative effect.</jats:p> | |
dc.publisher | Oxford University Press (OUP) | |
dc.source | Elements | |
dc.type | Article | |
dc.date.updated | 2021-07-02T02:38:19Z | |
dc.contributor.department | ECONOMICS | |
dc.description.doi | 10.1093/ej/ueab046 | |
dc.description.sourcetitle | The Economic Journal | |
dc.published.state | Published | |
Appears in Collections: | Staff Publications Elements |
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JRP_Cyclical_Government_Spending.pdf | 364.65 kB | Adobe PDF | OPEN | Post-print | View/Download |
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