Article ID Journal Published Year Pages File Type
967453 Journal of Monetary Economics 2014 18 Pages PDF
Abstract
What are the effects of cyclical fiscal policy on industry growth? We show that industries with a relatively heavier reliance on external finance or lower asset tangibility tend to grow faster (in terms of both value added and of labor productivity growth) in countries that implement fiscal policies that are more countercyclical. We reach this conclusion using Rajan and Zingales׳s (1998) difference-in-difference methodology on a panel data sample of manufacturing industries across 15 OECD countries over the period 1980-2005.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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