Local Effects of a Military Spending Shock: Evidence from Shipbuilding in the 1930s

B-Tier
Journal: Review of Economic Dynamics
Year: 2019
Volume: 32
Pages: 227-248

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using novel county-level data on shipbuilding contracts awarded during the Great Depression by the federal government, I estimate a local government spending multiplier. Manufacturing output, value added, employment, and average earnings all rise significantly in counties receiving naval spending. Contracts worth 12 percent of lagged output generate an extra 1.9 percentage points of manufacturing output growth over the following two years. The effects grow over time, and spillovers are estimated to be positive. Household survey data suggests that consumption rises at the household level. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:18-119
Journal Field
Macro
Author Count
1
Added to Database
2026-01-24