Description |
1 online resource (33 pages) : illustrations |
Series |
IMF Working Paper ; WP/16/60 |
|
IMF working paper ; WP/16/60.
|
Contents |
Cover -- Contents -- Abstract -- I. Introduction -- II. Hypothesis Development -- III. Data -- A. Federal Procurement Data -- B. Firm-Level Data -- IV. Empirical Analysis -- A. Specification -- B. Baseline Results -- V. Anticipation and Robustness -- A. Are Competitive Contracts Anticipated? -- B. Robustness to Model Specification -- C. Robustness to Contract Selection -- D. Conclusion -- References |
Summary |
We study the effects of federal purchases on firms investment using a novel panel dataset that combines federal procurement contracts in the United States with key financial firm-level information. We find that 1 dollar of federal spending increases firms capital investment by 7 to 11 cents. The average effect masks heterogeneity: Effects are stronger for firms that face financing constraints and they are close to 0 for unconstrained firms. In line with the financial accelerator model, our findings indicate that the effect of government purchases works through easing firms access to external borrowing. Furthermore, industry-level analysis suggests that the increase in investment at the firm level translates into an industry-wide effect without crowding-out capital investment of other firms in the same industry.--Abstract |
Notes |
"March 2016." |
|
"Fiscal Affairs Department." |
Bibliography |
Includes bibliographical references (pages 29-31) |
Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed March 16, 2016) |
Subject |
Investments -- Econometric models
|
|
Government purchasing -- Econometric models
|
|
Government purchasing -- Econometric models
|
|
Investments -- Econometric models
|
Form |
Electronic book
|
Author |
Zimmerman, Tom G., author.
|
|
International Monetary Fund. Fiscal Affairs Department, issuing body.
|
ISBN |
9781513579849 |
|
1513579843 |
|
151357938X |
|
9781513579382 |
|