Construction of a Narrative Instrument for Government Investment

Discussion Papers 2107, 59 S.

Marius Clemens, Claus Michelsen, Malte Rieth

2025

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Abstract

The article documents the construction of a narrative instrument for government investment, used in the paper ‘An Estimation and Decomposition of the Government Investment Multiplier’.

Malte Rieth

Research Associate in the Macroeconomics Department

Topics: Public finances, Monetary policy

JEL-Classification: E62;E65;H54
Keywords: Fiscal policy, public investment, structural vector autoregression, instrumental variable, general equilibrium model, Germany