#delimit; set more 1; drop _all; set mem 400m; *RAMEY IDENTIFYING GOVERNMENT SPENDING SHOCKS: IT'S ALL IN THE TIMING; * VAR.DO: FILE THAT CREATES BASELINE VARS USED IN THE FIRST PART OF THE PAPER; * THESE VARS USE THE CES-BASED TOTAL HOURS SERIES TO BE CONSISTENT WITH LITERATURE; log using varbase.log, replace; insheet using govdat3908.csv; *set scheme s1color; drop if quarter<1947; gen t = _n; gen t2 = t^2; gen t3 = t^3; gen qdate = q(1947q1) + _n-1; format qdate %tq; tsset qdate, quarterly; gen rwbus = nwbus/pbus; local varlist = "rgdp rcons rcnd rcsv rcdur rcndsv rinv rinvfx rnri rres tothours tothoursces rgov rdef"; foreach var of local varlist {; gen l`var' = log(`var'/totpop); }; local varlist = "totpop rwbus cpi pgdp"; foreach var of local varlist {; gen l`var' = log(`var'); }; * VARS THAT USE STANDARD IDENTIFICATION METHOD; var lrgov lrgdp lrcndsv lrinvfx ltothoursces lrwbus amtbr, lags(1/4) exog(t t2) ; varirf create irfgov, step(20) bs rep(500) set(irfgov, replace); varirf table oirf, impulse(lrgov) response(lrgov lrgdp lrcndsv lrinvfx ltothoursces lrwbus amtbr) std; * VARS THAT USE SHOCKS TO RAMEY-SHAPIRO MILITARY DATES; var wara lrgov lrgdp lrcndsv lrinvfx ltothoursces lrwbus amtbr, lags(1/4) exog(t t2) ; varirf create irfwar, step(20) bs rep(500) set(irfwar, replace); varirf table oirf, impulse(wara) response(lrgov lrgdp lrcndsv lrinvfx ltothoursces lrwbus amtbr) std; log close;