Owyang, Michael T.
[VerfasserIn]
;
Zubairy, Sarah
[Sonstige Person, Familie und Körperschaft];
Ramey, Valerie A.
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
Are Government Spending Multipliers Greater During Periods of Slack? Evidence from 20th Century Historical Data
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, February 2013
Erschienen in:NBER working paper series ; no. w18769
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w18769
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
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Beschreibung:
A key question that has arisen during recent debates is whether government spending multipliers are larger during times when resources are idle. This paper seeks to shed light on this question by analyzing new quarterly historical data covering multiple large wars and depressions in the U.S. and Canada. Using an extension of Ramey's (2011) military news series and Jordà's (2005) method for estimating impulse responses, we find no evidence that multipliers are greater during periods of high unemployment in the U.S. In every case, the estimated multipliers are below unity. We do find some evidence of higher multipliers during periods of slack in Canada, with some multipliers above unity