Estimating Aggregate Fiscal Multipliers from Local Data

RePEc Short ID: pdu275
ORCID iD: 0000-0002-2407-2792

Dupor, Bill; Karabarbounis, Marios; Kudlyak, Marianna; Mehkari, M. Saif; Price, David A.

Briefing

Estimating Aggregate Fiscal Multipliers from Local Data

Abstract: Variations among regions in their responses to economic policies can be used to estimate the effects of those policies at the national level while minimizing or eliminating issues of reverse causation. Recent research has employed county-level data to look at the effects of federal government spending ? in particular, the 2009?12 stimulus ? on aggregate consumption.

Keywords: Consumer Spending; Fiscal Multiplier; Regional Variation; Heterogeneous Agents;