This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 3 (May 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession

Article Citation

Shoag, Daniel. 2013. "Using State Pension Shocks to Estimate Fiscal Multipliers since the Great Recession." American Economic Review, 103(3): 121-24.

DOI: 10.1257/aer.103.3.121

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.

Article Full-Text Access

Full-text Article

Additional Materials

Authors

Shoag, Daniel (Harvard U)

JEL Classifications

E23: Macroeconomics: Production
E32: Business Fluctuations; Cycles
E52: Monetary Policy
E62: Fiscal Policy
G01: Financial Crises
H55: Social Security and Public Pensions
R11: Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us