Did Big Government's Largesse Help the Locals? The Implications of WWII Spending for Local Economic Activity, 1939-1958
Studies of the development of local economies often point to large-scale World War II military spending as a source of long-term economic growth, even though the spending declined sharply after the demobilization. We examine the longer term impact of the temporary war spending on county economies using a variety of measures of socioeconomic activity: including per capita retail sales, the extent of manufacturing, population growth, the share of women in the work force, housing values and ownership, and per capita savings over the period 1940-1950. We find that in the longer term counties receiving more war spending per capita during the war experienced extensive growth due to increases in population but not intensive growth, as the war spending had very small impacts on per capita measures of economic activity.
|Date of creation:||Dec 2006|
|Date of revision:|
|Note:||DAE PE EFG|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- A C Vias & G F Mulligan, 1997.
"Disaggregate Economic Base Multipliers in Small Communities,"
Environment and Planning A,
, vol. 29(6), pages 955-974, June.
- A C Vias & G F Mulligan, 1997. "Disaggregate economic base multipliers in small communities," Environment and Planning A, Pion Ltd, London, vol. 29(6), pages 955-974, June.
- Duffy-Deno, Kevin T. & Eberts, Randall W., 1991.
"Public infrastructure and regional economic development: A simultaneous equations approach,"
Journal of Urban Economics,
Elsevier, vol. 30(3), pages 329-343, November.
- Kevin T. Duffy-Deno & Randall W. Eberts, 1989. "Public infrastructure and regional economic development: a simultaneous equations approach," Working Paper 8909, Federal Reserve Bank of Cleveland.
- Hausman, Jerry A., 1983. "Specification and estimation of simultaneous equation models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 7, pages 391-448 Elsevier.
- Pereira, Alfredo M. & de Frutos, Rafael Flores, 1999. "Public Capital Accumulation and Private Sector Performance," Journal of Urban Economics, Elsevier, vol. 46(2), pages 300-322, September.
- Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
- Bailey, Stephen J & Connolly, Stephen, 1998. "The Flypaper Effect: Identifying Areas for Further Research," Public Choice, Springer, vol. 95(3-4), pages 335-61, June.
- John G. Fernald, 1999.
"Roads to Prosperity? Assessing the Link between Public Capital and Productivity,"
American Economic Review,
American Economic Association, vol. 89(3), pages 619-638, June.
- John G. Fernald, 1997. "Roads to prosperity? assessing the link between public capital and productivity," International Finance Discussion Papers 592, Board of Governors of the Federal Reserve System (U.S.).
- Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
- James R. Hines & Richard H. Thaler, 1995. "The Flypaper Effect," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 217-226, Fall.
- Jinyong Hahn & Jerry Hausman, 1999.
"A New Specification Test for the Validity of Instrumental Variables,"
99-11, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jinyong Hahn & Jerry Hausman, 2002. "A New Specification Test for the Validity of Instrumental Variables," Econometrica, Econometric Society, vol. 70(1), pages 163-189, January.
- Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
- Peter G. McGregor & Eric P. McVittie & J. Kim Swales & Ya Ping Yin, 2000. "The Neoclassical Economic Base Multiplier," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 1-31.
- Aschauer, David Alan, 1989.
"Is public expenditure productive?,"
Journal of Monetary Economics,
Elsevier, vol. 23(2), pages 177-200, March.
- Rappaport, Jordan & Sachs, Jeffrey D, 2003. "The United States as a Coastal Nation," Journal of Economic Growth, Springer, vol. 8(1), pages 5-46, March.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:12801. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.