Did new deal grant programs stimulate local economies? A study of federal grants and retail sales during the great depression

Price V Fishback, William C. Horrace, Shawn Kantor

Research output: Contribution to journalArticle

49 Citations (Scopus)

Abstract

Using data on New Deal grants to each U.S. county from 1993 to 1939, we estimate how relief and public works spending and payments to farmers through the Agricultural Adjustment Administration influenced retail consumption. On a per capita basis, we find that an additional dollar of public works and relief spending was associated with a 44 cent increase in 1939 retail sales. In contrast, the AAA seems to have had a negative effect on retail sales, suggesting that nonlandowners in the farm sector suffered disproportionate declines in income as a result of the AAA.

Original languageEnglish (US)
Pages (from-to)36-71
Number of pages36
JournalJournal of Economic History
Volume65
Issue number1
DOIs
StatePublished - Mar 2005

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Economy
Great Depression
Retail
Local economy
Public Works
Relief
Farmers
Farm
Income
Payment

ASJC Scopus subject areas

  • History
  • Economics, Econometrics and Finance (miscellaneous)
  • Economics and Econometrics

Cite this

Did new deal grant programs stimulate local economies? A study of federal grants and retail sales during the great depression. / Fishback, Price V; Horrace, William C.; Kantor, Shawn.

In: Journal of Economic History, Vol. 65, No. 1, 03.2005, p. 36-71.

Research output: Contribution to journalArticle

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