Briefing
Impacts of Government Spending Changes on Local Economies
Abstract: Local multipliers measure how an economic shock in a specific region (such as a change in federal government spending in that region) affects the local economy. Based on our survey of studies, a reasonable estimate range for local fiscal multipliers is: An income multiplier of 1.3-2.0, or an additional $1 of government spending increasing local GDP by 1.3 to 2.0 times. An employment multiplier of 10-30 jobs in the local economy for every additional $1 million in government spending (or $33,000 to $100,000 per job).
Access Documents
File(s):
File format is text/html
https://www.richmondfed.org/publications/research/economic_brief/2025/eb_25-28
Description: Briefing
Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2025-07-15
Volume: 25
Issue: 28