Government spending shocks and labor productivity

Simple item page
dc.contributor.authorLinnemann, Ludger
dc.contributor.authorGábor, B. Uhrin
dc.contributor.authorWagner, Martin
dc.date.accessioned2016-02-15T12:54:19Z
dc.date.available2016-02-15T12:54:19Z
dc.date.issued2016
dc.description.abstractA central question in the empirical fiscal policy literature is the magnitude, in fact even the sign, of the fiscal multiplier. Standard identification schemes for fiscal VAR models typically imply positive output as well as labor productivity responses to expansionary government spending shocks. The standard macro assumption of decreasing returns to labor, however, implies that expansionary government spending shocks should lead to increasing output and hours, but to decreasing labor productivity. To potentially reconcile theory and empirical analysis we impose, amongst other sign restrictions, opposite signs of the impulse responses of output and labor productivity to government spending shocks in eight- to ten-variable VAR models, estimated on quarterly US data. Doing so leads to contractionary effects of positive government spending shocks. This potentially surprising finding is robust to the inclusion of variable capital utilization rates and total factor productivity.en
dc.identifier.urihttp://hdl.handle.net/2003/34511
dc.identifier.urihttp://dx.doi.org/10.17877/DE290R-16564
dc.language.isoende
dc.relation.ispartofseriesDiscussion Paper / SFB 823;9/2016en
dc.subjectfiscal policyen
dc.subjectstructural VAR modelsen
dc.subjectsign restrictionsen
dc.subjectlabor productivityen
dc.subject.ddc310
dc.subject.ddc330
dc.subject.ddc620
dc.titleGovernment spending shocks and labor productivityen
dc.typeTextde
dc.type.publicationtypeworkingPaperde
dcterms.accessRightsopen access

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
DP_0916_SFB823_Linnemann_Uhrin_Wagner.pdf
Size:
234.29 KB
Format:
Adobe Portable Document Format
Description:
DNB
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
3.12 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Sonderforschungsbereich (SFB) 823