The propagation of public health spending shocks

Bebonchu Atems and Jehu Mette

Applied Economics Letters, 2024, vol. 31, issue 2, 102-106

Abstract: We study the dynamic response of output to a shock to government health spending. The shock (i) leads to an immediate and persistent rise in output and (ii) has a sizable explanatory power for the long-run variation in output. These findings suggest that the output effects of health spending are propagated in a ‘time-release’ fashion.

Date: 2024
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DOI: 10.1080/13504851.2022.2128168

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