Gupta, Rangan; Kabundi, Alain; Ziramba, Emmanuel - Department of Economics, Faculty of Economic and … - 2009
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 FAVAR model estimated with 116 variables spanning the quarterly period of 1976:01...
