Local Fiscal Multiplier on R&D and Science Spending: Evidence from the American Recovery and Reinvestment Act

We use detailed information about American Recovery and Reinvestment Act (ARRA) spending to identify the distinctive effects R&D stimulus had on county level employment dynamics. ARRA R&D and science funding was awarded to over half the counties in the country. Counties with research universities and existing manufacturing employment were more likely to receive funding. We estimate that, over the program’s five-year disbursement period, each one...