Title of article :
Confidence andthetransmissionofgovernmentspendingshocks
Author/Authors :
R¨ udiger Bachmann، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2012
Abstract :
Is impactingconfidenceanimportantchannelbywhichgovernmentspendingshocks
affecteconomicactivity?InastandardstructuralVAR,anempiricalmeasureof
confidencedoesnotsignificantlyreacttospendingshocksandoutputmultipliersare
around one.Inanon-linearVAR,confidencerisesfollowinganincreaseinspending
duringperiodsofeconomicslackandmultipliersaremuchlarger.Thesystematic
responseofconfidenceisirrelevantfortheoutputmultiplierduringnormaltimes,but
is criticalduringrecessions.Spendingshocksduringdownturnspredictproductivity
improvementsthroughapersistentincreaseingovernmentinvestmentrelativeto
consumption,whichisreflectedinhigherconfidence
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
