EconPapers    
Economics at your fingertips  
 

Fiscal Multipliers in the COVID-19 Recession

Alan Auerbach, Yuriy Gorodnichenko, Peter B. McCrory and Daniel Murphy
Additional contact information
Peter B. McCrory: J.P. Morgan Chase
Daniel Murphy: University of Virginia

No 14883, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In response to the record-breaking COVID19 recession, many governments have adopted unprecedented fiscal stimuli. While countercyclical fiscal policy is effective in fighting conventional recessions, little is known about the effectiveness of fiscal policy in the current environment with widespread shelter-in-place ("lockdown") policies and the associated considerable limits on economic activity. Using detailed regional variation in economic conditions, lockdown policies, and U.S. government spending, we document that the effects of government spending were stronger during the peak of the pandemic recession, but only in cities that were not subject to strong stay-at-home orders. We examine mechanisms that can account for our evidence and place our findings in the context of other recent evidence from microdata.

Keywords: stimulus; fiscal multiplier; COVID-19 (search for similar items in EconPapers)
JEL-codes: E32 E62 H3 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2021-11
New Economics Papers: this item is included in nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of International Money and Finance, 2022, 126, 102669

Downloads: (external link)
https://docs.iza.org/dp14883.pdf (application/pdf)

Related works:
Journal Article: Fiscal multipliers in the COVID19 recession (2022) Downloads
Working Paper: Fiscal multipliers in the COVID19 recession (2022) Downloads
Working Paper: Fiscal Multipliers in the COVID19 Recession (2021) Downloads
Working Paper: Fiscal Multipliers in the COVID19 Recession (2021) Downloads
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:iza:izadps:dp14883

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2025-03-30
Handle: RePEc:iza:izadps:dp14883