Using U.S. data over the period 1960Q3 - 2019Q4 we estimate a structural factor-augmented vector autoregressive model and find that a one standard deviation shock to macroeconomic uncertainty generates declines in state-level employment growth that range from -0.02 to -0.12 percentage points at...

We examine the relationship between legislature size and several components of government spending using a methodology that allows us to estimate how legislature size influences the fiscal response to shocks that are common to all states. We find little evidence that states with larger than...