The effects of government spending endogeneity on estimated multipliers in the U.S.

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• dc.contributor.author Moura, Albanca
• dc.date.accessioned 2016-09-15T12:49:41Z
• dc.date.available 2016-09-15T12:49:41Z
• dc.date.issued 2015-11
• dc.description.abstract This paper uses an estimated sticky-price model to identify endogenous movements in government consumption in the U.S. economy. Two feedback effects are considered, one originating from the stock of public debt and one from contemporaneous output. The data provide significant statistical evidence in favor of such mechanisms, even though a subsample analysis reveals that their strength may have decreased over time. Monte Carlo simulations assessing a DSGE model with exogenous spending and various identified VARs suggest that failing to account for these feedbacks may induce a severe upward bias in estimated multipliers.ca
• dc.description.sponsorship The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
• dc.format.mimetype application/pdfca
• dc.identifier.uri http://hdl.handle.net/10230/27287
• dc.language.iso engca
• dc.relation.ispartofseries Ademu Working Paper Series;15
• dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/649396
• dc.rights This is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.ca
• dc.rights.accessRights info:eu-repo/semantics/openAccessca
• dc.rights.uri https://creativecommons.org/licenses/by/4.0/ca
• dc.subject.keyword Government spending multiplier
• dc.subject.keyword Endogenous fiscal policy
• dc.subject.keyword Structural econometrics
• dc.title The effects of government spending endogeneity on estimated multipliers in the U.S.ca
• dc.type info:eu-repo/semantics/workingPaperca