<gh_stars>1-10
{
    "id": 6283,
    "citation_title": "Costly Capital Reallocation and the Effects of Government Spending",
    "citation_author": [
        "<NAME>",
        "<NAME>"
    ],
    "citation_publication_date": "1999-04-01",
    "issue_date": "1999-04-01",
    "revision_date": "None",
    "topics": [
        "Macroeconomics",
        "Fiscal Policy",
        "Macroeconomic Models"
    ],
    "program": [
        "Economic Fluctuations and Growth"
    ],
    "projects": null,
    "working_groups": null,
    "abstract": "\n\nChanges in government spending often lead to significant shifts in demand across sectors.  This paper analyzes the effects of sector-specific changes in government spending in a two-sector dynamic general equilibrium model in which the reallocation of capital across sectors is costly.  The two-sector model leads to a richer array of possible responses of aggregate variables than the one-sector model.  The empirical part of the paper estimates the effects of military buildups on a variety of macroeconomic variables using a new measure of military shocks.  The behavior of macroeconomic aggregates is consistent with the predictions of a multi-sector neoclassical model.  In particular, consumption, real product wages and manufacturing productivity fall in response to exogenous military buildups in the post-World War II United States.\n\n",
    "acknowledgement": "\n"
}