Empirical estimates of the effects of fiscal policy tend to be relatively imprecisely estimated. We contend that this is largely due to inadequately controlling for the information set of agents. Given the large increases in government spending on the horizon in the U.S., it is imperative that...

We study whether the effects of monetary policy are dependent on the demographic structure of the population. We exploit cross-sectional variation in the response of US states to an identified monetary policy shock. We find that there are three distinct age groups. In response to an increase in...

We study whether the effects of monetary policy are dependent on the demographic structure of the population. We exploit cross-sectional variation in the response of US states to an identified monetary policy shock. We find that there are three distinct age groups. In response to an increase in...