2024-03-28T09:05:22
114192
Thu Mar 28 09:05:22 EDT 2024
Replication data for: Industry Evidence on the Effects of Government Spending
Christopher J. Nekarda
Valerie A. Ramey
114192
https://doi.org/10.3886/E114192V1
This paper investigates the effects of government purchases at the industry level in order to shed light on the transmission mechanism for government spending on the aggregate economy. We create a new panel dataset that matches output and labor variables to industry-specific shifts in government demand. An increase in government demand raises output and hours, lowers real product wages and labor productivity, and has no effect on the markup. The estimates
also imply approximately constant returns to scale. The findings are more consistent with the effects of government spending in the neoclassical
model than the textbook New Keynesian model. (JEL E12, E23, E62, H50)
productivity
manufacturing
government spending
markups
E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
E23 Macroeconomics: Production
E62 Fiscal Policy
H50 National Government Expenditures and Related Policies: General
U.S.
1958 – 2005
survey data
census/enumeration data
NBER-CES Manufacturing Industry Database (https://data.nber.org/nberces/)