{
  "title": "Fiscal Stabilization and Growth: Evidence from Industry-level Data for Advanced and Developing Economies",
  "publication": "IMF Working Papers, September 5, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/09/05/fiscal-stabilization-and-growth-evidence-from-industry-level-data-for-advanced-and-45183",
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  "summary": "Medium-term growth can be enhanced by fiscal stabilization. However, to date, no systematic effort has been made to study the specific channels through which fiscal stabilization affects growth.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Medium-term growth can be enhanced by fiscal stabilization.\n- This paper examines the effect of fiscal stabilization on industrial growth and how this effect depends on different technological characteristics.\n- Authors: Sangyup Choi, Davide Furceri, João Tovar Jalles.\n- Date: September 5, 2017.\n- Format: IMF Working Papers."
    },
    {
      "heading": "Methodology",
      "content": "- Empirical approach: difference-in-difference.\n- Dataset: an unbalanced panel of 22 manufacturing industries for 55 advanced and developing economies over the period 1970-2014.\n- Dependent and independent variables: industry-level growth outcomes interacted with measures of fiscal stabilization and technological characteristics (as described in the paper)."
    },
    {
      "heading": "Key findings",
      "content": "- Fiscal stabilization fosters growth in industries with:\n  - higher external financial dependence and lower asset fixity;\n  - higher degree of labor intensity;\n  - higher investment lumpiness and relationship-specific input usage.\n- These effects tend to be larger during economic recessions.\n- Results are robust to different measures of fiscal stabilization and the inclusion of various interactions between a broad set of macroeconomic variables and production technologies."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Depreciation, Fiscal policy, Fiscal stabilization, Labor, National accounts, Production, Productivity.\n- Keywords: aggregate demand, asset fixity, baseline result, capital depreciation, dependent variable, Depreciation, developing economy, differential effect, effect of fiscal stabilization, external finance, fiscal stabilization, Global, growth, industry-level data, interaction effect, option-value effect, Productivity, technologies of production, time varying coefficients, WP.\n\n---\n\n Content in this bundle\n\n- wp17198\n  - wp17198 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp17198 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/09/05/fiscal-stabilization-and-growth-evidence-from-industry-level-data-for-advanced-and-45183"
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    "Authors: Sangyup Choi, Davide Furceri, João Tovar Jalles",
    "Published: September 5, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484316726.001",
    "Medium-term growth can be enhanced by fiscal stabilization.",
    "This paper examines the effect of fiscal stabilization on industrial growth and how this effect depends on different technological characteristics.",
    "Authors: Sangyup Choi, Davide Furceri, João Tovar Jalles.",
    "Date: September 5, 2017.",
    "Format: IMF Working Papers.",
    "Empirical approach: difference-in-difference.",
    "Dataset: an unbalanced panel of 22 manufacturing industries for 55 advanced and developing economies over the period 1970-2014.",
    "Dependent and independent variables: industry-level growth outcomes interacted with measures of fiscal stabilization and technological characteristics (as described in the paper).",
    "Fiscal stabilization fosters growth in industries with:",
    "These effects tend to be larger during economic recessions.",
    "Results are robust to different measures of fiscal stabilization and the inclusion of various interactions between a broad set of macroeconomic variables and production technologies.",
    "Subject: Depreciation, Fiscal policy, Fiscal stabilization, Labor, National accounts, Production, Productivity.",
    "Keywords: aggregate demand, asset fixity, baseline result, capital depreciation, dependent variable, Depreciation, developing economy, differential effect, effect of fiscal stabilization, external finance, fiscal stabilization, Global, growth, industry-level data, interaction effect, option-value effect, Productivity, technologies of production, time varying coefficients, WP.",
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