The Macroeconomic Effects of Aerospace Shocks

29 Pages Posted: 18 Nov 2020

See all articles by Luisa Corrado

Luisa Corrado

University of Rome Tor Vergata Department of Economics and Finance

Stefano Grassi

University of Rome, Tor Vergata, Faculty of Economics, Department of Economics and Finance

Edgar Silgado-Gómez

University of Rome Tor Vergata

Date Written: November 17, 2020

Abstract

As major future space explorations are firmly rooted in the US government agenda, research into the macroeconomic impact of a space mission is still scarce. This paper tries to fill the existing gap by building a narrative of the aerospace structural shocks to assess their macroeconomic effects. The main finding is that almost all the publicly funded space missions significantly and persistently raise real GDP, while this is not the case in the private narrative. We conclude that the latest events, while important from the perspective of private investors, do not reflect yet the milestone achievements carried out under government-driven space activity.

Keywords: Space Explorations, Narrative Events, Space Economy, VAR

JEL Classification: E0, C1, A1

Suggested Citation

Corrado, Luisa and Grassi, Stefano and Silgado-Gómez, Edgar, The Macroeconomic Effects of Aerospace Shocks (November 17, 2020). CEIS Working Paper No. 503, Available at SSRN: https://ssrn.com/abstract=3732446 or http://dx.doi.org/10.2139/ssrn.3732446

Luisa Corrado (Contact Author)

University of Rome Tor Vergata Department of Economics and Finance ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Stefano Grassi

University of Rome, Tor Vergata, Faculty of Economics, Department of Economics and Finance ( email )

Via Columbia, 2
Rome, 00133
Italy

Edgar Silgado-Gómez

University of Rome Tor Vergata ( email )

Via Cracovia 1
Rome, 00133
Italy

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