Accurately estimating the government spending multiplier is important so that fiscal policies can be used appropriately when recessions hit the economy. To fill the gap between the frontier research of calculating the government spending multiplier and current Korean research, and to estimate a...

To accurately quantify the effects of government spending, it is necessary to identify exogenous changes in government spending. In this paper, we estimate a proxy VAR, developed by Stock and Watson (2012) and Mertens and Ravn (2013), using a revised supplementary budget from the government as...