Regional Transfer Multipliers

Corbi, R, Papaioannou, E and Surico, P (2019) Regional Transfer Multipliers. Review of Economic Studies, 86 (5). pp. 1901-1934. ISSN 0034-6527 OPEN ACCESS


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
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© 2019 Oxford University Press

Funder Name: European Research Council, European Research Council
Date Deposited: 17 Dec 2018 12:11
Date of first compliant deposit: 16 Jan 2019
Subjects: Brazil
Public finance
Regional planning
Last Modified: 22 Jun 2024 01:53

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