Employment Effects of Stimulus Investments

Lukas Buchheim
Additional contact information
Lukas Buchheim: University of Munich

No 1455, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: We estimate the causal impact of countercyclical infrastructure investments on employment and unemployment from cross-county data. To this end, we exploit a particular feature of the sizable German infrastructure investment program enacted during the Great Recession. By law, 65 % of all stimulus funds were earmarked for investment in educational infrastructure with a special focus on the renovations of existing school buildings. The scope for stimulus investment at the local level was thus to a large part predetermined by the number of schools, opening up the possibility to use schools as an instrument for local investments. Our 2SLS estimates suggest costs for one job-year between 18'500 Euro and 35'500 Euro. The first jobs were created one year after the stimulus program was enacted. These costs per job-year are similar to estimates from evaluations of the US stimulus program.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2015/paper_1455.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:1455

Access Statistics for this paper

More papers in 2015 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().