A Cup Runneth Over: Fiscal Policy Spillovers from the 2009 Recovery Act
Bill Dupor () and
Peter B. McCrory
Economic Journal, 2018, vol. 128, issue 611, 1476-1508
This article studies the effects of interregional spillovers from the American Recovery and Reinvestment Act of 2009 (the Recovery Act). Using crossâ€ county commuting data, we cluster US counties into local labour markets, each of which we further partition into two subregions. We then compare differential labour market outcomes and Recovery Act spending at the regional and subregional levels. Among pairs of subregions, we find evidence of fiscal policy spillovers. According to our benchmark specification, $1 of Recovery Act spending in a subregion increases its own wage bill by $0.64 and increases the wage bill in its neighbouring subregion by $0.50 during the first two years following the Act's passage. The spillover effect occurs in the service sector, whereas the direct effect occurs in both the services and goodsâ€ producing sector.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: A Cup Runneth Over: Fiscal Policy Spillovers from the 2009 Recovery Act (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wly:econjl:v:128:y:2018:i:611:p:1476-1508
Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1111/(ISSN)1468-0297
Access Statistics for this article
Economic Journal is currently edited by Estelle Cantillon, Martin Cripps, Andrea Galeotti, Morten Ravn, Kjell G. Salvanes, Frederic Vermeulen, Hans-Joachim Voth and Rachel Kranton
More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().