Local Fiscal Multipliers and Fiscal Spillovers in the USA
Abstract
We estimate local fiscal multipliers and spillovers for the USA using a rich dataset based on the US Department of Defense contracts and a variety of outcome variables relating to income and employment. We find strong positive spillovers across locations and industries. Both backward linkages and general equilibrium effects (e.g., income multipliers) contribute to the positive spillovers. Geographical spillovers appear to dissipate fairly...
Paper Details
Title
Local Fiscal Multipliers and Fiscal Spillovers in the USA
Published Date
Dec 19, 2019
Journal
Volume
68
Issue
1
Pages
195 - 229
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