Plausibly Exogenous [985] - Government Expenditure (10/10/2022)
LHS Variable
Government expenditure
RHS Variable
Income
Source of Exogenous Variation
Annual variation in the international oil price weighted with countries' average oil net-export GDP shares as a plausibly exogenous source of within-country variation in countries’ permanent income
- Bruckner, Chong, and Gradstein (2022) “Estimating the permanent income elasticity of government expenditures: Evidence on Wagner's law based on oil price shocks”