News of defence spending changes the economic behaviour of people and firms

摘要

The expectation of changes in defence spending accounts for a non-negligible share of US output fluctuations, write Nadav Ben Zeev and Evi Pappa. Announced changes in US public spending on defence have a significant impact on the economic behaviour of firms and households. In particular, anticipated increases in defence spending induce a significant and persistent increase in output, hours worked, ...