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

Zeev, N. B. & Pappa, E. (2017). News of defence spending changes the economic behaviour of people and firms.
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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, ...

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