Hidden Bibliographic Details
| Other authors / contributors: | Zimmerman, Tom G., author.
International Monetary Fund. Fiscal Affairs Department, issuing body.
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| ISBN: | 9781513579849
1513579843
151357938X
9781513579382
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| Notes: | "March 2016."
"Fiscal Affairs Department."
Includes bibliographical references (pages 29-31).
Online resource; title from pdf title page (IMF.org Web site, viewed March 16, 2016).
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| 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.
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| Other form: | Print version: Hebous, Shafik. Can Government Demand Stimulate Private Investment? Evidence from U.S. Federal Procurement : Washington, D.C. : International Monetary Fund, ©2016 9781513578729
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