Gupta, Rangan; Kabundi, Alain; Ziramba, Emmanuel - In: Defence and Peace Economics 21 (2010) 2, pp. 135-147
Empirical evidence on the effect of defense spending on US output is at best mixed. Against this backdrop, this paper assesses the impact of a positive defense spending shock on the growth rate of real GNP using a Factor Augmented Vector Autoregressive (FAVAR) model estimated with 116 variables...