Regional transfer multipliers

Corbi, R, Papaioannou, E and Surico, P (2018) Regional transfer multipliers. The Review of Economic Studies. ISSN 0034-6527 (In Press)

Abstract

A series of discontinuities in the allocation mechanism of federal transfers, to municipal governments in Brazil allow us to identify the causal effect of public spending on local labor markets, using a ‘fuzzy’ Regression Discontinuity Design (RDD). Our estimates imply a cost per job of about 8,000 US dollars per year and a local income multiplier around two. The effect comes mostly from employment in services and is more pronounced among less financially developed municipalities.

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Item Type: Article
Subject Areas: Economics
Date Deposited: 17 Dec 2018 12:11
Last Modified: 14 Sep 2019 06:16
URI: http://lbsresearch.london.edu/id/eprint/1037
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