Geographic Cross-Sectional Fiscal Spending Multipliers: What Have We Learned?

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2019
Volume: 11
Issue: 2
Pages: 1-34

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

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

Abstract

A geographic cross-sectional fiscal spending multiplier measures the effect of an increase in spending in one region of a monetary union. Empirical studies of such multipliers have proliferated. I review this research and what the evidence implies for national multipliers. Based on an updated analysis of the ARRA and a survey of empirical studies, my preferred point estimate for a cross-sectional multiplier is 1.8. The paper also discusses conditions under which the cross-sectional multiplier provides a rough lower bound for the national, no-monetary-policy-response multiplier. Putting these elements together, the cross-sectional evidence suggests a national no-monetary-policy-response multiplier of 1.7 or above.

Technical Details

RePEc Handle
repec:aea:aejpol:v:11:y:2019:i:2:p:1-34
Journal Field
General
Author Count
1
Added to Database
2026-01-25