Environmental Public Investment and Fiscal Countercyclicality: Resilience Channels and Cross-Country Evidence
Description
This repository contains the complete replication package for the paper: **“Environmental Public Investment and Fiscal Countercyclicality: Resilience Channels and Cross-Country Evidence”** The package provides all data, programs, and documentation required to reproduce the empirical results reported in the manuscript submitted to *Economic Modelling*. The repository includes: * Raw and processed datasets used in the analysis; * Stata data files (.dta); * Stata do-files for data construction, estimation, robustness analyses, and figure generation; * Programs reproducing all tables, figures, and appendix results reported in the paper; * A detailed README file describing data sources, software requirements, package dependencies, file structure, and step-by-step replication instructions. The empirical analysis examines the dynamic effects of environmental public expenditure shocks on fiscal countercyclicality using a panel of 34 advanced and emerging economies over the period 1995–2023. The replication materials allow users to reproduce the baseline local-projection estimates, institutional and income heterogeneity analyses, robustness checks, and all reported tables and figures. Software requirement: Stata 18 (or later) with the user-written packages listed in the README file. All files have been checked to ensure that the results presented in the manuscript can be independently replicated from the materials contained in this repository.
Files
Steps to reproduce
## Steps to Reproduce ### Software Requirements The replication package was prepared using **Stata 18**. The following user-written packages are required: ```stata ssc install reghdfe, replace ssc install xtscc, replace ssc install ivreg2, replace ssc install estout, replace ``` ### Data The main analytical dataset is: ```text panel_with_fisco_envshocks.dta ``` Additional data files required by some specifications include: ```text wdi3.dta ``` Both datasets are included in the replication package. ### Replication Procedure The paper can be fully replicated by running the following Stata programs in sequence: #### Step 1. Descriptive Statistics and Baseline Correlations Run: ```text table1,2_fig1.do ``` This program reproduces: * Table 1. Descriptive Statistics * Table 2. Simple Correlations Between Fiscal Countercyclicality and Environmental Spending Shocks * Figure 1. Unconditional Correlation between Fiscal Countercyclicality and Environmental Spending Shocks #### Step 2. Baseline Local Projection Results Run: ```text LP_fig2_fig3.do ``` This program reproduces: * Figure 2. Dynamic Effects of Environmental Spending on Fiscal Countercyclicality * Figure 3. Dynamic Effects of Environmental Spending Components on Fiscal Countercyclicality #### Step 3. Nonlinear Heterogeneity Analysis Run: ```text LP_fig4_fig5.do ``` This program reproduces: * Figure 4. Dynamic Effects of Environmental Spending on Fiscal Countercyclicality Conditional on Institutional Quality * Panel A: Regulatory Quality * Panel B: Government Effectiveness * Figure 5. Dynamic Effects of Environmental Spending on Fiscal Countercyclicality Conditional on Income Level #### Step 4. Robustness and Sensitivity Analysis Run: ```text robustness.do ``` This program reproduces: * Table A2. Correlations Across Alternative Output Gap Measures * Table A3. Robustness to Alternative Cyclical Measures * Table A4. Orthogonality Tests * Table A5. Anticipation Tests * Table A6. Leave-One-Out Sensitivity Results * Figure A1. Leave-One-Out Analysis ### Replication Time On a standard desktop computer (Intel i7 class processor, 16GB RAM), the complete replication requires approximately 10–20 minutes depending on system configuration. ### Expected Outputs Running all programs sequentially reproduces every table, figure, and empirical result reported in the manuscript and online appendix.
Institutions
- University of LisbonLisbon, Lisbon