Understanding the Effects of a Shock to Government Purchases

Wendy Edelberg, Martin Eichenbaum and Jonas Fisher
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Wendy Edelberg: University of Chicago

Review of Economic Dynamics, 1999, vol. 2, issue 1, 166-206

Abstract: This paper investigates the consequences of an exogenous increase in U.S. government purchases. We find that in response to such a shock, employment, output, and nonresidential investment rise, while real wages, residential investment and consumption expenditures fall. The paper argues that a simple variant of the neoclassical growth model which distinguishes between non-residential investment is consistent with this evidence. (Copyright: Elsevier)

JEL-codes: E1 E6 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (259)

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Related works:
Working Paper: Understanding the effects of a shock to government purchases (1998)
Working Paper: Understanding the Effects of a Shock to Government Purchases (1998)
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DOI: 10.1006/redy.1998.0036

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