Hi all,

I am currently working on a state-dependent fiscal multiplier using forecast error to identify the fiscal policy shocks and the local projection method to estimate the impulse response of output to fiscal policy shocks. I will use annual data of 15 countries.
I wonder if you share me the command in stata to identify government spending shocks as forecast errors of government spending. Moreover the syntax of estimating IRF based on panel LPM.
Best
***[example] forecasts of government spending are taken from October publications of the IMF’s WEO. Then, the fiscal spending shocks are identified as the forecast errors of government spending. Thus,
FEi,t=gi,t(actual)-gi,t(forecast)
where gi,t= Gi,t/Yi,t is government spending as a share of GDP. The actual government spending comes from the October WEO of the following year. i-refers to country and t refers to time.