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Finds defense spending in a recession has a strong immediate impact, which tapers off over time. Non defense spending initially has a fiscal multiplier below 1 which later increases over time, eventually overtaking the defense spending one. In an expansion period the opposite is true, the estimated multiplier for defense spending is below 1, and then falls (as it did when the spending shock started in a recession) but non defense spending starts above one (eventually falling however, where in the recession period it instead turned positive).

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