Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession
Has government spending raised income and employment since 2008? I use new data on state pension returns during the Great Recession to recover exogenous changes in spending. Instrumenting with these return shocks, I estimate that each dollar of windfall-financed spending raised local incomes by $1.43 and every additional $22,011 of spending created one contemporaneous job. These estimates are similar to those found in Shoag (2010) despite the non-overlapping datasets. Unlike Shoag (2010), however, the bulk of the employment increase post-2008 stems from decreases in unemployment rather than increased labor force participation.
Volume (Year): 103 (2013)
Issue (Month): 3 (May)
|Contact details of provider:|| Web page: https://www.aeaweb.org/aer/Email: |
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antonio Acconcia & Giancarlo Corsetti & Saverio Simonelli, 2011.
"Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-experiment,"
Economics Working Papers
ECO2011/12, European University Institute.
- Antonio Acconcia & Giancarlo Corsetti & Saverio Simonelli, 2014. "Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-experiment," American Economic Review, American Economic Association, vol. 104(7), pages 2185-2209, July.
- Acconcia, Antonio & Corsetti, Giancarlo & Simonelli, Saverio, 2011. "Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-experiment," CEPR Discussion Papers 8305, C.E.P.R. Discussion Papers.
- Antonio Acconcia & Giancarlo Corsetti & Saverio Simonelli, 2011. "Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-experiment," CSEF Working Papers 281, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 04 Feb 2013.
- Daniel J. Wilson, 2012. "Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 251-82, August.
- Clemens, Jeffrey & Miran, Stephen, 2010.
"The effects of state budget cuts on employment and income,"
38715, University Library of Munich, Germany.
- Jeffrey Clemens & Stephen Miran, 2012. "Fiscal Policy Multipliers on Subnational Government Spending," American Economic Journal: Economic Policy, American Economic Association, vol. 4(2), pages 46-68, May.
- Lauren Cohen & Joshua Coval & Christopher Malloy, 2011. "Do Powerful Politicians Cause Corporate Downsizing?," Journal of Political Economy, University of Chicago Press, vol. 119(6), pages 1015 - 1060.
- Gabriel Chodorow-Reich & Laura Feiveson & Zachary Liscow & William Gui Woolston, 2012. "Does State Fiscal Relief during Recessions Increase Employment? Evidence from the American Recovery and Reinvestment Act," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 118-45, August.
- Valerie A. Ramey, 2011.
"Identifying Government Spending Shocks: It's all in the Timing,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 1-50.
- Valerie A. Ramey, 2009. "Identifying Government Spending Shocks: It's All in the Timing," NBER Working Papers 15464, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:121-24. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros)or (Michael P. Albert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.