Economics Seminar（2014-12）

Topic:THE MULTIPLIER FOR FEDERAL SPENDING IN THE STATES DURING THE GREAT DEPRESSION [1]

Speaker: Price Fishback

Affiliation: University of Arizona

Time: Tuesday, 13 May. 14:00-15:30pm
Location: Room K02, Guanghua Building 2

Abstract：
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 was higher and for AAA farm grants was 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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