The Macroeconomic Effects of Aerospace Shocks

Corrado LuisaGrassi StefanoSilgado-Gómez Edgar
CEIS Research Paper
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.

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Number: 503
Keywords: Space Explorations,Narrative Events,Space Economy,VAR.
JEL codes: E0,C1,A1
Volume: 18
Issue: 9
Date: Tuesday, November 17, 2020
Revision Date: Tuesday, November 17, 2020