We examine the correlates of district spending and revenue losses following the onset of the Great Recession and the role of fiscal federalism in mitigating these losses. We estimate whether spending and revenue declines were driven primarily by local labor market conditions or the degree of...

In this paper, we assess the impact of fiscal policy discretion on economic activity in the short and medium-term. Using a panel of 132 countries from 1960 to 2008, we find that fiscal policy discretion provides a net stimulus to the economy in the short-run and crowding-in effects are amplified...

This paper estimates how fiscal multipliers have changed over time using a time varying parameter model vector autorregressive model with stochastic volatility (TVPSV-VAR). First, I find that there is significant evidence that the multiplier has changed over time, once we control for changes in...