Big G
Lydia Cox, Gernot Müller, Ernesto Pastén, Raphael Schoenle, Michael Weber
Big G typically refers to aggregate government spending on a homogeneous good. In this paper, we open up this construct by analyzing the entire universe of procurement contracts of the US government and establish five facts. First, government spending is granular, that is, it is concentrated in relatively few firms and sectors. Second, relative to private expenditures its composition is biased. Third, procurement contracts are short-lived. Fourth, idiosyncratic variation dominates the fluctuation of spending. Last, government spending is concentrated in sectors with relatively sticky prices. Accounting for these facts within a stylized New Keynesian model offers new insights into the fiscal transmission mechanism: fiscal shocks hardly impact inflation, little crowding out of private expenditure exists, and the multiplier tends to be larger compared to a one-sector benchmark aligning the model with the empirical evidence
Year of publication: |
April 2020
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Authors: | Cox, Lydia |
Other Persons: | Müller, Gernot (contributor) ; Pastén, Ernesto (contributor) ; Schoenle, Raphael (contributor) ; Weber, Michael (contributor) |
Institutions: | National Bureau of Economic Research (contributor) |
Publisher: |
2020: Cambridge, Mass : National Bureau of Economic Research |
Subject: | Inflation | Dauer | Duration | Branche | Economic sector | Öffentlicher Auftrag | Public contract | Multiplikator | Multiplier | Verdrängungseffekt | Crowding out | Preisrigidität | Price stickiness | Systematischer Fehler | Bias |
Saved in:
freely available
Extent: | 1 Online-Ressource illustrations (black and white) |
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Series: | NBER working paper series ; no. w27034 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | System requirements: Adobe [Acrobat] Reader required for PDF files Mode of access: World Wide Web Hardcopy version available to institutional subscribers |
Other identifiers: | 10.3386/w27034 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012481991
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