Nonlinear effects of government spending shocks in the USA: Evidence from state‐level data

• Published in: Journal of applied econometrics (Chichester, England) Vol. 36; no. 1; pp. 86 - 97
• Main Authors: Mumtaz, Haroon, Sunder‐Plassmann, Laura
• Format: Journal Article
• Language: English
• Published: Chichester Wiley Periodicals Inc 01.01.2021
• Subjects: Agribusiness; Business cycles; Econometrics; Government spending; Heterogeneity; Mining; Nonlinearity; Recessions; United States > US

Summary This paper uses state‐level data to estimate the effect of government spending shocks during expansions and recessions. By employing a mixed‐frequency framework, we are able to include a long span of annual state‐level government spending data in our nonlinear quarterly panel VAR model. We f...