Hussain, Syed M and Liu, Lin 
ORCID: 0000-0002-8222-7625
(2023)
Macroeconomic effects of government spending shocks: New narrative evidence from Canada.
Journal of Macroeconomics, 75.
p. 103483.
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Abstract
This paper examines the macroeconomic effects of government spending shocks in Canada for the period of 1949–2012. We construct a novel measure of news about exogenous government spending changes identified through the narrative approach. We use government documents, mostly the budget speech, to identify the size, timing, and principal motivation for all planned major federal government spending changes. To achieve identification, we consider those changes that are unrelated to the contemporaneous movements in the economy. The implied government spending multiplier estimates using our exogenous government spending news series are between 1.08 and 1.69.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Government spending shocks, Government spending multiplier, Narrative accounts, Canada |
| Divisions: | Faculty of Humanities and Social Sciences > School of Management |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 03 May 2023 07:58 |
| Last Modified: | 12 Nov 2023 02:30 |
| DOI: | 10.1016/j.jmacro.2022.103483 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3170098 |
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