We find that consumption risk is lower in states that implement counter-cyclical fiscal policies. Moreover, firms whose … headquarters to a counter-cyclical state. Therefore, counter-cyclical fiscal policies lower the consumption risk of investors and …

How does private consumption react to an exogenous increase in government expenditure? Standard structural vector … autoregressions (SVARs) usually report a positive GDP as well as consumption response, while event studies report a negative … consumption response. We investigate in a SVAR whether anticipation of the fiscal shock reverses the sign of this dynamic response …

We investigate the effects of government expenditure on private consumption when the private sector anticipates the … economic theory. Using post-WWII US data, we find that when taking into account anticipation, private consumption significantly … decreases in response to a defense expenditure shock, whereas when considering shocks to non-defense spending, consumption …