TY  - BOOK
AU  - Ben Zeev,Nadav
AU  - Ramey,Valerie A.
AU  - Zubairy,Sarah
ED  - National Bureau of Economic Research.
TI  - Do Government Spending Multipliers Depend on the Sign of the Shock?
T2  - NBER working paper series
PY  - 2023///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Fiscal Policy • Modern Monetary Theory
KW  - jelc
KW  - U.S. • Canada: 1913&ndash
N1  - March 2023; Hardcopy version available to institutional subscribers
N2  - We analyze whether government spending multipliers differ by the sign of the shock. Using aggregate historical U.S. data, we apply Ben Zeev's (2020) nonlinear diagnostic tests and find evidence of nonlinearities in the impulse response functions of both government spending and GDP. We then extend Ramey and Zubairy's (2018) framework to allow for asymmetric effects as a type of state dependence to estimate multipliers. While we find differences in the impulse response functions, the resulting multipliers do not differ by sign of the shock. Thus, we find no evidence of asymmetry of government spending multipliers
UR  - https://www.nber.org/papers/w31015
UR  - http://dx.doi.org/10.3386/w31015
ER  -