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Thursday, July 16, 2020 | History

2 edition of Dynamic employment and hours effects of government spending shocks found in the catalog.

Dynamic employment and hours effects of government spending shocks

Mingwei Yuan

Dynamic employment and hours effects of government spending shocks

by Mingwei Yuan

  • 360 Want to read
  • 19 Currently reading

Published by Bank of Canada in Ottawa, Ont .
Written in English

    Subjects:
  • Employment (Economic theory),
  • Hours of labor -- Canada -- Econometric models.,
  • Government spending policy -- Canada -- Econometric models.

  • Edition Notes

    Statementby Mingwei Yuan and Wenli Li.
    SeriesWorking paper (Bank of Canada) -- 99-1
    ContributionsLi, Wenli., Bank of Canada.
    Classifications
    LC ClassificationsHD5701.5 .Y83 1999
    The Physical Object
    Paginationv, 44 p. :
    Number of Pages44
    ID Numbers
    Open LibraryOL20690100M
    ISBN 10066227458X

    This paper analyzes the effects of fiscal policy shocks on the Canadian economy, building on the sign-restrictions-VAR approach. Unlike previous studies, this paper explicitly accounts for spillovers from the U.S., Canada’s main trad-ing partner, and for oil price fluctuations. The findings show that the size and sign of the spending and tax rev-File Size: 1MB. THE EFFECTS OF FISCAL SHOCKS ON EMPLOYMENT AND THE REAL WAGE We use both U.S. aggregate and U.S. state data. Besides having a larger set of experiments over which to generalize our conclusions, the use of U.S. state data has two additional advantages. First, monetary policy can be taken as given in the analysis.

    We quantified the effects of government spending over a four-year horizon following exogenous news about future U.S. defense spending. Following a policy change that begins when the unemployment rate is high, if government spending increases by 1 percent of GDP, then total employment increases by between 0 percent and percent. In our empirical investigation, we focus only on government spending shocks rather than tax shocks, because the effects of government spending shocks have been investigated more elaborately both in theory and in empirical work. Further, for a variety of reasons .

    Deep habits and the dynamic effects of monetary policy shocksq Morten O. Ravna,d,*, understanding the impact of technology shocks and of government spending shocks. In the current paper we argue that deep habits is also an interesting mechanism when accounting for the impact. Themes covered in the book include various aspects of labour market conditions and reforms and their link to inflation and inflation expectations, the impact of the national minimum wage, the interaction between public and private sector wage inflation, economic policy uncertainty and employment, government debt thresholds, sovereign yields and.


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Dynamic employment and hours effects of government spending shocks by Mingwei Yuan Download PDF EPUB FB2

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This paper focuses on the effects of temporary government spending shocks in the US economy on employment, hours worked per worker and output. Several VAR models demonstrate that a temporary innovation in government spending raises both hours worked per worker and output, but lowers the employment by: Yuan, Mingwei & Li, Wenli, "Dynamic employment and hours effects of government spending shocks," Journal of Economic Dynamics and Control, Elsevier, vol.

24(8), pagesJuly. good job of accounting for the dynamic response of private consumption to a fiscal policy shock. Government employment expenditure acts as a transfer payment for households, thereby dampening substantially the wealth effect on consumption and labor supply associated with fiscal shocks.

keywords: Government employment; Fiscal policy. "Dynamic employment and hours effects of government spending shocks," Journal of Economic Dynamics and Control, Elsevier, vol.

24(8), pagesJuly. Mingwei Yuan & Wenli Li, " Dynamic Employment and Hours Effects of Government Spending Shocks," Staff Working PapersBank of : Tatsuyoshi Matsumae, Ryo Hasumi.

Mingwei Yuan has written: 'Dynamic employment and hours effects of government spending shocks' -- subject(s): Econometric models, Government spending policy, Hours of labor, Employment (Economic. The literature dealing with fiscal shocks has considered a range of different measures of government spending.

1 Most papers have focused on government consumption, whether in the aggregate Author: Michele Cavallo. We construct unanticipated government spending shocks for developing countries from to and study their effects on income distribution. We find that unanticipated fiscal consolidations lead to a long-lasting increase in income inequality, while fiscal expansions lower inequality.

The results are robust to several measures of income distribution and size of the fiscal Author: Davide Furceri, Jun Ge, Prakash Loungani, Giovanni Melina. Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate Morten O.

Ravn, Stephanie Schmitt-Grohé, Martín Uribe. NBER Working Paper No. Issued in AugustRevised in October NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics. Romer and Romer: w The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks: Eichenbaum and Fisher: w Fiscal Policy in the Aftermath of 9/ Barro and Redlick: w Macroeconomic Effects from Government Purchases and Taxes: Ravn, Schmitt-Grohé, and Uribe: w Explaining the Effects of Government Spending Shocks on Consumption.

between shocks to government spending, net taxes and output. Section 5 presents the dynamic effects of tax shocks. Section 6 does the same for spending shocks.

Section 7 discusses robustness; among other things, in this section we take up the important issue of anticipated fiscal policy. Section 8. relations between shocks to government spending, net taxes, and output.

Section V presents the dynamic effects of tax shocks. Section VI does the same for spending shocks. Section VII dis-cusses robustness, including subsample stability, quarter depen-dence, cointegration, and the. Explaining the Effects of Government Spending Shocks Sarah Zubairy y Duke University I find that in response to a structural unanticipated government spending shock, output, hours, consumption and wages all rise, whereas investment falls on impact.

I construct and estimate a dynamic stabilizing the economy and about the dynamic. the difficulty of identifying shocks to government spending that are exogenous, unexpected, and large in magnitude.

1 This paper introduces an instrumental variables approach that addresses these Size: KB. Abstract. We examine the causal impact of public-sector spending on corporate investment. Making use of population count revisions in census years as exogenous shocks to the cross-sectional allocation of federal funds, we find that increases in federal spending reduce firms’ investment, R&D spending, employment growth, sales growth, and firm-level equity by: 3.

This paper proposes a new approach to study the effects of government spending shocks. In particular, we investigate whether expectations about future government spending growth are relevant for explaining the impact of fiscal policy shocks on output and public debt at the time of the fiscal expansion.

government spending might have positive wealth effects. Thus, including these categories in spending shocks is not the best way to test the neoclassical model versus the Keynesian model.3 In sum, defense spending is a major part of the variation in government spending around trend.

Yuan, W. LiDynamic employment and hours effects of government spending shocks Journal of Economic Dynamics and Control, 24 (8) (), pp.

Google ScholarCited by:   This article explores a new approach to identifying government spending shocks which avoids many of the shortcomings of existing approaches. The new approach is to identify government spending shocks with statistical innovations to the accumulated excess returns of large US military contractors.

This strategy is used to estimate the dynamic responses of output, hours, consumption Cited by: Figure1replicates the stylized facts regarding the dynamic effects of government spending shocks as reported byBlanchard and Perotti(),Fatas and Mihov(),Mountford and Uhlig (), andFisher and Peters()—a rise in government spending has an expansionary effectAuthor: Nooman Rebei.

Characterization of the Dynamic Effects of Fiscal Shocks in a Small Open Economy by Nooman Rebei. ISSN shocks to government spending in a small open economy. In particular, nominal rigidities are incorporated into the prices of imported goods, the prices of local goods, and by: 4.new approach is to identify government spending shocks with statistical in-novations to the accumulated excess returns of large US military contractors.

This strategy is used to estimate the dynamic responses of output, hours, con-sumption and real wages to a government spending shock.

We flnd that positive.The Effects of Fiscal Shocks on Employment and the Real Wage. that has reported mixed results for the employment response to government employment shocks using annual U.S. state and aggregate Author: Evi Pappa.