We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession.
- Authors
Shoag, Daniel
- Abstract
Has government spending raised income and employment since 2008? I use new data on state pension returns during the Great Recession to recover exogenous changes in spending. Instrumenting with these return shocks, I estimate that each dollar of windfall-financed spending raised local incomes by $1.43 and every additional $22,011 of spending created one contemporaneous job. These estimates are similar to those found in Shoag (2010) despite the non-overlapping datasets. Unlike Shoag (2010), however, the bulk of the employment increase post-2008 stems from decreases in unemployment rather than increased labor force participation.
- Subjects
UNITED States; GLOBAL Financial Crisis, 2008-2009; CIVIL service pensions; STATE government personnel's pensions; STATE governments; MONETARY policy; GOVERNMENT spending policy; EXOGENEITY (Econometrics); INVESTMENT of pension funds
- Publication
American Economic Review, 2013, Vol 103, Issue 3, p121
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.103.3.121