The aim of the following work is to assess the dynamic effects of government spending on an extensive set of variables via macroeconometric modeling. As argued in Fatas and Mihov (2001), the following analysis of government spending is not a restrictive focus, but it explicitly aims at resolving...

We investigate the international propagation of fiscal policy shocks originated in the United States using a Global VAR framework. We identify shocks to US tax rates and government spending by using narrative series as external instruments, following the proxy SVAR methodology. The main results...