This paper tests the asymmetry in government spending multipliers using the panel data in the US postwar states. Empirical results show that output and employment rate respond asymmetrically to military procurement spending shocks with different signs and magnitudes. Our findings suggest that expansionary multipliers are much larger than contractionary multipliers, and that small-scale spending shocks tend to have a greater impact than large-scale ones.
https://www.sciencedirect.com/science/article/pii/S0165176521003335?via%3Dihub
