Data and Code for National Fiscal Policies to Fight Recessions in US States
- Dynan, Karen (Harvard University)
- Elmendorf, Douglas (Harvard University)
AbstractCountercyclical fiscal policy generally focuses on national economic downturns. But U.S. states experience significantly different patterns of unemployment, and demand shocks appear to drive much of that variation. State budget rules limit the ability of states to mount their own countercyclical policies. Federal taxes and spending programs have countercyclical effects within states, but the magnitude of those effects depends on policies that were designed based on other considerations (just as the extent of national automatic stabilizers is the result of policies based on other considerations). Enacting countercyclical fiscal policy calibrated to state unemployment rates would reduce the cost of recessions.
1976-01-01 / 2019-12-31Time Period: Thu Jan 01 00:00:00 EST 1976--Tue Dec 31 00:00:00 EST 2019
Dynan, Karen, and Douglas Elmendorf. “National Fiscal Policies to Fight Recessions in US States.” AEA Papers and Proceedings 110 (May 2020): 131–36. https://doi.org/10.1257/pandp.20201076.
- ID: 10.1257/pandp.20201076 (DOI)
Update Metadata: 2020-07-29 | Issue Number: 1 | Registration Date: 2020-07-29