Ben Zeev, Nadav; Ramey, Valerie A.; Zubairy, Sarah - National Bureau of Economic Research - 2023
We analyze whether government spending multipliers differ by the sign of the shock. Using aggregate historical U … functions of both government spending and GDP. We then extend Ramey and Zubairy's (2018) framework to allow for asymmetric …, the resulting multipliers do not differ by sign of the shock. Thus, we find no evidence of asymmetry of government …