Using Bayesian methods, I estimate a DSGE model where a recession is initiated by losses suffered by banks and exacerbated by their inability to extend credit to the real sector. The event triggering the recession has the workings of a redistribution shock: a small sector of the economy --...

We estimate the output gap that is consistent with a fully specified DSGE model. Given the structural parameters estimated using Bayesian methods, we estimate the output gap that is defined as a deviation of output from its flexible-price equilibrium. Our output gap illustrates the U.S. business...

This article explores the arguments for and against the use of government debt to finance large-scale public investments. Relative to the options of higher taxation or lower other expenditures, debt finance means that both the costs and the benefits of the investment fall on future generations....

The study attempts to explore the determinants of government investment (public investment, including general government investment) in Pakistan using the autoregressive distributed lags (ARDL) estimation technique over the period 1964 to 2015. Both theoretical and empirical content available in...

We examine different types of government spending while literature usually treats government spending as a homogenous compound. We disaggregate the government spending into three parts; namely, government investment, government wage component consumption (i.e. wage expenditure) expenditure, and...

This article contributes new time series for studying the U.K. economy during World War I and the interwar period. The time series are per capita hours worked and average tax rates of capital income, labor income, and consumption. Uninterrupted time series of these variables are provided for an...