Replication data for: Fiscal Stimulus in a Monetary Union: Evidence from US Regions

Principal Investigator(s): View help for Principal Investigator(s) Emi Nakamura; Jón Steinsson

Name	File Type	Size	Last Modified
DataPrograms			10/11/2019 09:52:PM
LICENSE.txt	text/plain	14.6 KB	10/11/2019 05:52:PM

Project Citation:

Nakamura, Emi, and Steinsson, Jón. Replication data for: Fiscal Stimulus in a Monetary Union: Evidence from US Regions. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112744V1

Project Description

Summary: We use rich historical data on military procurement to estimate the effects of government spending. We exploit regional variation in military build-ups to estimate an "open economy relative multiplier" of approximately 1.5. We develop a framework for interpreting this estimate and relating it to estimates of the standard closed economy aggregate multiplier. The latter is highly sensitive to how strongly aggregate monetary and tax policy "leans against the wind." Our open economy relative multiplier "differences out" these effects because monetary and tax policies are uniform across the nation. Our evidence indicates that demand shocks can have large effects on output.

Scope of Project

JEL Classification:
      E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
      E32 Business Fluctuations; Cycles
      E62 Fiscal Policy
      F33 International Monetary Arrangements and Institutions
      H56 National Security and War
      H57 National Government Expenditures and Related Policies: Procurement
      R12 Size and Spatial Distributions of Regional Economic Activity

Related Publications

Download this project

Published Versions

V1 [2019-10-11]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.