Data and Code for: The Government Spending Multiplier in a Multi-Sector Economy
Principal Investigator(s): View help for Principal Investigator(s) Hafedh Bouakez, HEC Montréal; Omar Rachedi, ESADE Business School, Universitat Ramon Llull; Emiliano Santoro, University of Copenhagen
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| ReplicationPackage | 11/02/2021 12:16:PM |
Project Citation:
Bouakez, Hafedh, Rachedi, Omar, and Santoro, Emiliano. Data and Code for: The Government Spending Multiplier in a Multi-Sector Economy. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-12-09. https://doi.org/10.3886/E147524V1
Project Description
Summary:
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We study the effects of aggregate government spending shocks in a
production-network economy where sectors differ in their price rigidity,
factor intensities, use of intermediate inputs, and contribution to final
demand. The model implies an aggregate value-added multiplier that is 75
percent (and 0.32 dollars) larger than that obtained in the average
one-sector economy. This amplification is mainly driven by input-output
linkages and -- to a lesser extent -- sectoral heterogeneity in price
rigidity. Aggregate government spending shocks also lead to heterogeneous
responses of sectoral value added, which are larger among upstream
industries. We present novel empirical evidence supporting this prediction.
Scope of Project
JEL Classification:
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E62 Fiscal Policy
H32 Fiscal Policies and Behavior of Economic Agents: Firm
E62 Fiscal Policy
H32 Fiscal Policies and Behavior of Economic Agents: Firm
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