Unconventional Confidence Bands in the Literature on the Government Spending Multiplier

Ryan Murphy ()

Econ Journal Watch, 2015, vol. 12, issue 1, 72-83

Abstract: Macroeconomists have applied many versions of vector autoregression to measuring the size of the government spending multiplier. Very frequently in the literature on that multiplier, the statistical significance of results is held to an unconventionally low standard of one standard error. This paper will document the pervasiveness of the issue among thirty-one papers. Five of the six papers with at least 500 Google citations use that unconventionally narrow band.

Keywords: Vector autoregression; fiscal multipliers; spending multipliers (search for similar items in EconPapers)
JEL-codes: C32 E62 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ejw:journl:v:12:y:2015:i:1:p:72-83

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