Data and Code for: The Government Spending Multiplier in a Multi-Sector Economy

We study the effects of aggregate government spending shocks in aproduction-network economy where sectors differ in their price rigidity,factor intensities, use of intermediate inputs, and contribution to finaldemand. The model implies an aggregate value-added multiplier that is 75percent (and 0.32 dollars) larger than that obtained in the averageone-sector economy. This amplification is mainly driven by input-outputlinkages and -- to a lesser extent -- sectoral heterogeneity in pricerigidity. Aggregate government spending shocks also lead to heterogeneousresponses of sectoral value added, which are larger among upstreamindustries. We present novel empirical evidence supporting this prediction.