A Primer on the Empirical Identification of Government Spending Shocks (ICPSR 22681)
Version Date: Jun 9, 2008 View help for published
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Kristie M. Engemann, Federal Reserve Bank of St. Louis;
Michael T. Owyang, Federal Reserve Bank of St. Louis;
Sarah Zubairy, Duke University
https://doi.org/10.3886/ICPSR22681.v1
Version V1
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The empirical literature on the effects of government spending shocks lacks unanimity about the responses of consumption and wages. Proponents of shocks identified by structural vector autoregressions (VARs) find results consistent with New Keynesian models: consumption and wages increase. On the other hand, proponents of the narrative approach find results consistent with neoclassical models: consumption and wages decrease. This paper reviews these two identifications and confirms their differences by using standard economic series. It also uses alternative measures of government spending, output, and the labor market and shows that, although there are minor fluctuations within each identification, the disparate results between the two are robust to the alternative measures. However, under the structural VAR approach, the authors find some differences between the responses to federal and state/local government spending.
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(1) The zipped package contains a program file, a Microsoft Excel file which contains the documentation, data, and a data appendix used to create the figures and tables used in the publication. Additional documentation and syntax, also used to create the figures used in the publication, are contained within a second zipped package. (2) These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigators if further information is desired.
Original Release Date View help for Original Release Date
2008-06-09
Version History View help for Version History
- Engemann, Kristie M., Michael T. Owyang, and Sarah Zubairy. A Primer on the Empirical Identification of Government Spending Shocks. ICPSR22681-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2008-06-09. http://doi.org/10.3886/ICPSR22681.v1
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These data are flagged as replication datasets and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.
The public-use data files in this collection are available for access by the general public. Access does not require affiliation with an ICPSR member institution.