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How does an increase in government purchases affect economy?

Author

Listed:
  • Martin S. Eichenbaum
  • Jonas D. M. Fisher

Abstract

This article studies the impact on aggregate economic activity of increases in defense purchases which are unrelated to other developments in the economy. The authors use empirical evidence to evaluate the predictions of several prominent models.

Suggested Citation

  • Martin S. Eichenbaum & Jonas D. M. Fisher, 1998. "How does an increase in government purchases affect economy?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 22(Q III), pages 29-43.
    • Handle: RePEc:fip:fedhep:y:1998:i:qiii:p:29-43:n:v.22no.3
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    Citations

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    Cited by:

    1. Julio J. Rotemberg, 1999. "A Heuristic Method for Extracting Smooth Trends from Economic Time Series," NBER Working Papers 7439, National Bureau of Economic Research, Inc.
    2. Darrel Cohen, 1999. "An analysis of government spending in the frequency domain," Finance and Economics Discussion Series 1999-26, Board of Governors of the Federal Reserve System (U.S.).

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