Is the supermultiplier nil? A replication study of Deleidi and Mazzucato (2021)

Jens Boysen-Hogrefe

No 2250, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Analyzing US macro data via a structural vector-autoregressive model, Deleidi and Mazzucato (2021) find strong positive spillover of mission-oriented government spending on private research and development activity and on overall economic dynamism ("crowding in"). However the result hinges on specific transformation of the data. Deleidi and Mazzucato deflate all variables in their model via the GDP deflator. Applying originally price adjusted data a spillover on GDP cannot be found. Estimating the model with data starting in 1984, the results point at 'crowding out' of private research and development activity.

Keywords: Replcation study; Mission oriented innovation policies; Fiscal multiplier; Sraffian supermultiplier (search for similar items in EconPapers)
JEL-codes: C32 E22 E62 O25 O30 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-inv
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:2250

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