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Macro Fiscal Policy in Economic Unions: States as Agents
Macro Fiscal Policy in Economic Unions: States as Agents
Our Price: $20.00
By Gerald Carlino (au); Robert P. Inman (au)
Year: 2014
Pages: 46
Binding Paperback
ISBN 978-1-4578-5709-6

Product Code: 145785709X

An important component of the Am. Recovery and Reinvestment Acts (ARRAs) $796 billion proposed stimulus budget was $318 in fiscal assistance to state and local governments, yet there are no precise estimates of the impact of such assistance on the macroeconomy. Government evaluations using the impacts of direct federal spending and tax relief miss the role of states as agents. This report provides estimates of aids multiplier effects allowing explicitly for state behavior. It concludes that: (1) federal transfers to state and local governments are less stimulative than transfers to households and firms; (2) federal aid for welfare spending is more stimulative than is general purpose aid; (3) an estimated model of state government fiscal behavior provides a microeconomic foundation for the observed macroeconomic impacts of aid. Figures and tables. This is a print on demand report.

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