Government Purchases Over the Business Cycle: the Role of Economic and Political Inequality
---- Acknowledgements ----
We are grateful to seminar participants at Boston University, the Chicago FED, City U of Hong Kong, Georgetown, the Konstanz Seminar on Monetary Theory and Policy, Mannheim, Michigan, 2010 Midwest Macro Meeting, National U of Singapore, 2010 NBER-SI-PEPF, 2010 New York/Philadelphia Fed Quantitative Macro Workshop, 2010 SED, Yale, as well as Christopher House and Mark Huggett for their comments. We thank Marina Azzimonti and Davide Debortoli for their discussions. We would also like to thank Liz Accetta from the Census Bureau for giving us the historical data of the Annual Survey of State Government Finances, and Josh Montes for his excellent research assistance. The usual disclaimer applies. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.