scholarly journals Heterogeneous Government Spending Multipliers in the Era Surrounding the Great Recession

2020 ◽  
Vol 102 (2) ◽  
pp. 304-322 ◽  
Author(s):  
Marco Bernardini ◽  
Selien De Schryder ◽  
Gert Peersman
Keyword(s):  
Significant Influence ◽  
Great Recession ◽  
Government Spending ◽  
Spillover Effects ◽  
Quarterly Data ◽  
The Great Recession ◽  
Low Degree ◽  
Positive Spillover

We use novel quarterly data of U.S. states to examine the dynamics of relative spending multipliers in the decade surrounding the Great Recession. While multipliers were around 1 in expansions, they reached values above 4 when a state was in a recession. Also a high (low) degree of household indebtedness augmented (lowered) a state's multiplier by 0.5 in expansions and 2 in recessions. We further document modest positive spillover effects across states and show that a mere redistribution of spending across states also had a significant influence on the aggregate U.S. economy due to cross-state heterogeneity of the effects.

scholarly journals A Longitudinal Analysis of Personal Economic Anxiety, Concern for the National Economy, and Distrust of Government Spending

2019 ◽  
Vol 5 ◽  
pp. 237802311987288
Author(s):  
Michael C. Lotspeich ◽  
Charles M. Tolbert
Keyword(s):  
Great Recession ◽  
Government Spending ◽  
The Political ◽  
Longitudinal Assessment ◽  
The Great Recession ◽  
Personal Concern ◽  
Political Landscape ◽  
National Economic ◽  
Economic Anxiety ◽  
Election Studies

We conduct a longitudinal assessment of the effect of personal and national economic anxiety on distrust of government spending using the American National Election Studies, 1988 to 2016. Over the long haul, we find that national economic anxiety is a consistent predictor of approval of government spending. In recent times, we also observe an increasing saliency of personal economic anxiety when it comes to attitudes about government spending. After the Great Recession, we observe a convergence of personal concern and national concern that is emblematic of vast change in the political landscape.

scholarly journals Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession

2013 ◽  
Vol 103 (3) ◽  
pp. 121-124 ◽  
Author(s):  
Daniel Shoag
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Great Recession ◽  
Government Spending ◽  
Fiscal Multipliers ◽  
The Great Recession ◽  
Employment Increase ◽  
State Pension

Has government spending raised income and employment since 2008? I use new data on state pension returns during the Great Recession to recover exogenous changes in spending. Instrumenting with these return shocks, I estimate that each dollar of windfall-financed spending raised local incomes by $1.43 and every additional $22,011 of spending created one contemporaneous job. These estimates are similar to those found in Shoag (2010) despite the non-overlapping datasets. Unlike Shoag (2010), however, the bulk of the employment increase post-2008 stems from decreases in unemployment rather than increased labor force participation.

Sign in / Sign up

Export Citation Format

Share Document