TY - JOUR
T1 - The multiplier for federal spending in the states during the great depression
AU - Fishback, Price
AU - Kachanovskaya, Valentina
N1 - Publisher Copyright:
Copyright © The Economic History Association 2015.
Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 2015/3/13
Y1 - 2015/3/13
N2 - To estimate the impact of federal spending on state incomes, we develop an annual panel data set between 1930 and 1940. Using panel methods we estimate that an added dollar of federal spending in the state increased state per capita income by between 40 and 96 cents. The point estimates for nonfarm grants are higher and for AAA farm grants are much smaller and negative in some cases. The spending led to increase in durable good spending on automobiles but had no positive effects on private employment.
AB - To estimate the impact of federal spending on state incomes, we develop an annual panel data set between 1930 and 1940. Using panel methods we estimate that an added dollar of federal spending in the state increased state per capita income by between 40 and 96 cents. The point estimates for nonfarm grants are higher and for AAA farm grants are much smaller and negative in some cases. The spending led to increase in durable good spending on automobiles but had no positive effects on private employment.
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U2 - 10.1017/S0022050715000054
DO - 10.1017/S0022050715000054
M3 - Article
AN - SCOPUS:84925209517
VL - 75
SP - 125
EP - 162
JO - Journal of Economic History
JF - Journal of Economic History
SN - 0022-0507
IS - 1
ER -