[[{“value”:”We use an instrumental-variables estimator reliant on variation in congressional representation to analyze the macroeconomic effects of federal aid to state and local governments across all four major pieces of COVID-19 response legislation. Through December 2022, we estimate that the federal government allocated $603,000 for each state or local government job-year preserved. Our baseline confidence
The post How effective was pandemic aid? appeared first on Marginal REVOLUTION.”}]]
We use an instrumental-variables estimator reliant on variation in congressional representation to analyze the macroeconomic effects of federal aid to state and local governments across all four major pieces of COVID-19 response legislation. Through December 2022, we estimate that the federal government allocated $603,000 for each state or local government job-year preserved. Our baseline confidence interval allows us to rule out estimates smaller than $220,400. Our estimates of effects on aggregate income and output are centered on zero and imply modest if any spillover effects onto the broader economy.
That is from a new paper by Jeffrey Clemens, Philip Hoxie, and Stan Veuger. Via the excellent Kevin Lewis.
The post How effective was pandemic aid? appeared first on Marginal REVOLUTION.
Data Source, Economics, Uncategorized
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