Purpose: The purpose of this paper is to investigate the impact of a consumer confidence shock on GDP and different types of consumer spending during a slack state as well as a non-slack state of an economy. Design/methodology/approach: The authors use the US quarterly data from 1960Q1 to...

Purpose: This paper investigates the impact of a monetary policy shock on the production of a sample of 312 industries in manufacturing, mining and utilities in the United States using a factor-augmented vector autoregression (FAVAR) model. Design/methodology/approach: The authors use a FAVAR...