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What is the optimal policy response to a negative sectoral shock? How do frictions in goods and labor markets affect …
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suggest that although positive energy revenue shock increases growth almost immediately, it is not sustained. A negative … energy revenue shock is found to have a greater adverse effect on primary expenditure than a positive shock and this largely …
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This paper uses state-level data to estimate the effect of federal defense spending shocks on state real activity. We find moderately strong evidence that for the average state the fiscal multiplier is larger during recessions. However, there is substantial heterogeneity across the...
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