The Government Spending Multiplier in a Multi-Sector Model

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Standard

The Government Spending Multiplier in a Multi-Sector Model. / Bouakez, Hafedh; Rachedi, Omar; Santoro, Emiliano.

I: American Economic Journal: Macroeconomics, Bind 15, Nr. 1, 2023, s. 209-239.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Bouakez, H, Rachedi, O & Santoro, E 2023, 'The Government Spending Multiplier in a Multi-Sector Model', American Economic Journal: Macroeconomics, bind 15, nr. 1, s. 209-239. https://doi.org/10.1257/mac.20200213

APA

Bouakez, H., Rachedi, O., & Santoro, E. (2023). The Government Spending Multiplier in a Multi-Sector Model. American Economic Journal: Macroeconomics, 15(1), 209-239. https://doi.org/10.1257/mac.20200213

Vancouver

Bouakez H, Rachedi O, Santoro E. The Government Spending Multiplier in a Multi-Sector Model. American Economic Journal: Macroeconomics. 2023;15(1):209-239. https://doi.org/10.1257/mac.20200213

Author

Bouakez, Hafedh ; Rachedi, Omar ; Santoro, Emiliano. / The Government Spending Multiplier in a Multi-Sector Model. I: American Economic Journal: Macroeconomics. 2023 ; Bind 15, Nr. 1. s. 209-239.

Bibtex

@article{18ed92ac013f4b48808e6f20f0b2b622,
title = "The Government Spending Multiplier in a Multi-Sector Model",
abstract = "We study the effects of aggregate government spending shocks in a production network economy where sectors differ in their price rigidity, factor intensities, use of intermediate inputs, and contribution to final demand. The model implies an aggregate value-added multiplier that is 75 percent (and $0.32) larger than that obtained in the average one-sector economy. This amplification is mainly driven by input-output linkages and—to a lesser extent—sectoral heterogeneity in price rigidity. Aggregate government spending shocks also lead to heterogeneous responses of sectoral value added, which are larger among upstream industries. We present novel empirical evidence supporting this prediction. ",
author = "Hafedh Bouakez and Omar Rachedi and Emiliano Santoro",
year = "2023",
doi = "10.1257/mac.20200213",
language = "English",
volume = "15",
pages = "209--239",
journal = "American Economic Journal: Macroeconomics",
issn = "1945-7707",
publisher = "American Economic Association",
number = "1",

}

RIS

TY - JOUR

T1 - The Government Spending Multiplier in a Multi-Sector Model

AU - Bouakez, Hafedh

AU - Rachedi, Omar

AU - Santoro, Emiliano

PY - 2023

Y1 - 2023

N2 - We study the effects of aggregate government spending shocks in a production network economy where sectors differ in their price rigidity, factor intensities, use of intermediate inputs, and contribution to final demand. The model implies an aggregate value-added multiplier that is 75 percent (and $0.32) larger than that obtained in the average one-sector economy. This amplification is mainly driven by input-output linkages and—to a lesser extent—sectoral heterogeneity in price rigidity. Aggregate government spending shocks also lead to heterogeneous responses of sectoral value added, which are larger among upstream industries. We present novel empirical evidence supporting this prediction.

AB - We study the effects of aggregate government spending shocks in a production network economy where sectors differ in their price rigidity, factor intensities, use of intermediate inputs, and contribution to final demand. The model implies an aggregate value-added multiplier that is 75 percent (and $0.32) larger than that obtained in the average one-sector economy. This amplification is mainly driven by input-output linkages and—to a lesser extent—sectoral heterogeneity in price rigidity. Aggregate government spending shocks also lead to heterogeneous responses of sectoral value added, which are larger among upstream industries. We present novel empirical evidence supporting this prediction.

U2 - 10.1257/mac.20200213

DO - 10.1257/mac.20200213

M3 - Journal article

VL - 15

SP - 209

EP - 239

JO - American Economic Journal: Macroeconomics

JF - American Economic Journal: Macroeconomics

SN - 1945-7707

IS - 1

ER -

ID: 275067448