Purpose: A large empirical literature has found positive effects of economic freedom on economic outcomes, such as output and per capita growth. However, several variables in the index are very likely to decline in conjunction with recessions. The purpose of this paper is to determine whether,...

Purpose This paper aims to address a growing empirical literature which measures the size of the fiscal multiplier at the state and local levels. This literature generally fails to consider the reaction function of the central bank, which typically should be expected to offset local increases in...