Regional transfer multipliers

Corbi, R, Papaioannou, E and Surico, P (2018) Regional transfer multipliers. Review of Economic Studies, 86 (5). pp. 1901-1934. ISSN 0034-6527

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
Additional Information: © 2018 Oxford University Press. This is a pre-copyedited, author-produced version of an article accepted for publication in The Review of Economic Studies following peer review. The version of record: Raphael Corbi, Elias Papaioannou, Paolo Surico, Regional Transfer Multipliers, The Review of Economic Studies, Volume 86, Issue 5, October 2019, Pages 1901–1934, is available online at: https://academic.oup.com/restud/article/86/5/1901/5210878 and at: https://doi.org/10.1093/restud/rdy069
Funder Name: European Research Council, European Research Council
Subjects: B > Brazil
P > Public finance
R > Regional planning
Date Deposited: 17 Dec 2018 12:11
Last Modified: 21 Jan 2020 10:48
URI: http://lbsresearch.london.edu/id/eprint/1037
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