policy shocks. We find that controlling for the business cycle shock is important, but controlling for the monetary policy … shock is not, that government spending shocks crowd out both residential and non-residential investment but donot reduce …

A central question in applied research is to estimate the effect of an exogenous intervention or shock on an outcome …

. Specifically, we use sign restrictions to identify a government revenue shock as well as a government spending shock, while … controlling for a generic business cycle shock and a monetary policy shock. We explicitly allow for the possibility of … announcement effects, i.e., that a current fiscal policy shock changes fiscal policy variables in the future, but not at present …