Burnside, A CraigLusompa, Amaze Basilwa2015-09-012016-01-092015https://hdl.handle.net/10161/10540<p>This paper investigates whether government spending multipliers are time-varying.</p><p>The multipliers are measured using time-varying parameter (TVP) local projections.</p><p>This paper uses a simple modication to local projections that corrects for the inherent</p><p>autocorrelated errors in local projections. The results indicate that there is</p><p>evidence of time variation in government spending multipliers and that the results of</p><p>previous studies should be seriously questioned. The results also indicate that there</p><p>is significant time variation in the strength of Blanchard-Perotti and defense news</p><p>identified shocks.</p>EconomicsStatisticsBayesian statisticsFiscal MultipliersInstrumental variableLocal ProjectionTime Varying ParametersMaster's thesis