rattan, Ellen R. M cG; Ohanian, Lee E. - In: International Economic Review 51 (2010) 2, pp. 509-532
Much debate surrounds the usefulness of the neoclassical growth model for assessing the macroeconomic impact of fiscal shocks. We test the theory using data from World War II, which is by far the largest fiscal shock in the history of the United States. We take observed changes in fiscal policy...