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firms through intermediate goods deliver a multiplier similar to the one associated with capital accumulation in a … neoclassical growth model. Because the intermediate goods' share of revenue is about 1/2, this multiplier is substantial. Second …
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Using novel data on military spending for 129 countries in the period 1988–2013, this paper provides new evidence on the effects of government spending on output in advanced and developing countries. Identifying government-spending shocks with an exogenous variation in military spending,...
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