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Does it matter where and how governments spend?

Author

Listed:
  • Ernil Sabaj

    (University of Warwick [Coventry])

  • Rashid Sbia

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, Ministry of Finance of United Arab Emirates)

  • Haytem Troug

    (FMI - International Money Fund)

Abstract

This paper studies government spending multipliers in a panel of OECD countries. While recent literature has highlighted the differences in government consumption and investment effects, we extend this approach sectorally and report findings that suggest strong heterogeneities across sectors for government spending and output. Differences in price stickiness and sectors' position in the production network are the main drivers of these heterogeneities.

Suggested Citation

  • Ernil Sabaj & Rashid Sbia & Haytem Troug, 2023. "Does it matter where and how governments spend?," Post-Print hal-04171879, HAL.
    • Handle: RePEc:hal:journl:hal-04171879
    DOI: 10.1016/j.econlet.2023.111158
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-04171879
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    More about this item

    Keywords

    Fiscal multiplier; Government investment; Government consumption; Sectoral heterogeneity; Sector-specific shocks;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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