Evaluating Changes in the Transmission Mechanism of Government Spending Shocks

Evaluating Changes in the Transmission Mechanism of Government Spending Shocks
We empirically revisit the crowding-in effect of government spending on private consumption based on rolling windows of U.S. data. Results show that in earlier samples government spending is increasingly crowding in private consumption; however, this relation is reverted in the latest periods. We propose a model embedding... READ MORE...

Publication date: March 2017
ISBN 9781475586060
$18.00

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