In this paper, I estimate a structural panel vector autoregression to study the consequences of changes in U.S. state government fiscal policies for local economic activity in the short-term. My main result is that the state-level spending multiplier is relatively small and the tax multiplier...

In this paper we present a spatial nonparametric analysis of local multipliers. Following Moretti (2010), we estimate the effect of an exogenous shock in the employment of the tradable sector on the employment in either the nontradable sector or the rest of the tradable sector using a...

This paper attempts to rescue the regional export-base growth model from a purely demand-side interpretation. It formally develops the classic Northian approach, where the exploitation of region-specific resources by export-orientated production sectors determines regional growth. In this model,...

Recently, Oosterhaven and Stelder (2002, Journal of Regional Science, 42, 533-543) (OS) addressed the issue of measuring the economic importance of an industry. In practice, the traditional multipliers are commonly multiplied by, for example, the outputs. According to OS, this is a misuse that...

This paper takes a fresh look at the estimation of economic base multipliers. It uses recent developments in both nonstationary and nonlinear inference to consider issues surrounding the derivation of such multipliers for Northern Ireland. It highlights the problem of distinguishing between...