The government spending multiplier
Evidence from county level data
Bibliographic Data
| ID | 12007456 |
|---|---|
| Authors | Christopher A Erickson (New Mexico State University, corresponding author), Victor Owusu-Nantwi (New Mexico State University), Fred Owensby (New Mexico State University) |
| Year | 2014 |
| Volume | 52 |
| Issue | 3 |
| Pages | 358-363 |
| Publication date | 2014-10-30 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Social Science Journal (JOURNAL) |
| Journal identifiers | ISSN: 0362-3319 • E-ISSN: 1873-5355 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1016/j.soscij.2014.09.008 |
| OpenAlex | W2072045909 |
| Language | EN |
| References cited | 20 |
The passage of the American Recovery and Reinvestment Act (ARRA) of 2009 has brought fiscal policy to the forefront once again. The size of the “multiplier” of government spending becomes of critical importance for determining the effect of stimulus programs. Yet there is considerable controversy about this issue. This study adds to the discussion on the size of the multiplier by using earnings data by county. This allows the creation of a panel data that includes 3141 counties for the time period 2001–2012. We estimate the federal government spending multiplier to be approximate 1.5. Our estimate for state and local spending multipliers are considerably smaller. Our results have implication for policy in that federal programs will be more effective for stabilization county economies than state or local spending
Earnings · Econometrics · Economics · Fiscal multiplier · Fiscal policy · Government spending · Macroeconomics · Multiplier (economics · Panel data · Public economics · Stimulus (psychology · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact · Finance
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How big (small?) are fiscal multipliers?
Understanding the Effects of Government Spending on Consumption
Zero Bound on Interest Rates and Optimal Monetary Policy
The Macroeconomic Effects of Tax Changes
Costly capital reallocation and the effects of government spending
Macroeconomic Effects From Government Purchases and Taxes
Measuring the Output Responses to Fiscal Policy
Output Effects of Government Purchases
Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
When Is the Government Spending Multiplier Large
Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity
Identifying Government Spending Shocks
| Highly cited | No |
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