Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act

Daniel Wilson

American Economic Journal: Economic Policy, 2012, vol. 4, issue 3, 251-82

Abstract: This paper estimates the "jobs multiplier" of fiscal stimulus spending using the state-level allocations of federal stimulus funds from the American Recovery and Reinvestment Act (ARRA) of 2009. Because the level and timing of stimulus funds that a state receives was potentially endogenous, I exploit the fact that most of these funds were allocated according to exogenous formulary allocation factors such as the number of federal highway miles in a state or its youth share of population. Cross-state IV results indicate that ARRA spending in its first year yielded about eight jobs per million dollars spent, or $125,000 per job. (JEL E24, E62, H72, H75, R23)

JEL-codes: E24 E62 H72 H75 R23 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/pol.4.3.251
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (166)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/pol.4.3.251 (application/pdf)
http://www.aeaweb.org/aej/pol/data/2011-0102_data.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

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:aea:aejpol:v:4:y:2012:i:3:p:251-82

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().