Public expenditures and the unemployment rate in the American states: panel evidence

References

• Abrams , BA . 1999 . The effect of government size on the unemployment rate . Public Choice , 99 : 395 – 401 .
   Web of Science ®Google Scholar
• Abrams , BA and Wang , S . 2006 . The effect of government size on the steady-state unemployment rate: a structural error correction model, Working Paper No. 2006-05 , Newark : Department of Economics, University of Delaware .
   Google Scholar
• Advisory Commission on Intergovernmental Relations (ACIR) . 1977 . Federal grants their effects on state-local expenditures, employment levels, wage rates , Washington, DC : A-61 .
   Google Scholar
• Aizenman , J and Pasrichas , GK . 2010 . On the ease of overstating the fiscal stimulus in the US 2008-9, NBER Working Paper No. 15784
   Google Scholar
• Bairam , E . 1991 . Government expenditure, money supply and unemployment in the USA: an analysis of the pre-war and post-war functional forms . Applied Economics , 23 : 1483 – 6 .
   Web of Science ®Google Scholar
• Bania , N , Gray , JA and Stone , JA . 2007 . Growth, taxes, and government expenditures: growth hills for US states . National Tax Journal , 60 : 193 – 204 .
   Web of Science ®Google Scholar
• Barro , RJ . 1990 . Government spending in a simple model of endogenous growth . Journal of Political Economy , 98 : S103 – 25 .
   Web of Science ®Google Scholar
• Baumol , WJ . 1967 . The macroeconomics of unbalanced growth: the anatomy of urban crisis . American Economic Review , 57 : 415 – 26 .
   Web of Science ®Google Scholar
• Breitung , J . 2005 . A parametric approach to the estimation of cointegrating vectors in panel data . Econometric Reviews , 24 : 151 – 73 .
   Web of Science ®Google Scholar
• Boyd , DJ and Dadayan , L . 2010 . State and local government employment are down since the start of the recession Data Alert (August), The Nelson A. Rockefeller Institute of Government
   Google Scholar
• Canning , D and Pedroni , P . 2008 . Infrastructure, long-run economic growth and causality tests for cointegrated panels . The Manchester School , 75 : 504 – 27 .
   Web of Science ®Google Scholar
• Chodorow-Reich , G . 2010 . Feiveson, L., Liscow, Z. and Woolston, W. G. , Does state fiscal relief during recessions increase employment? Evidence from the American Recovery and Reinvestment Act, Working Paper, The University of California, Berkeley
   Google Scholar
• Christiano , L . 2009 . Eichenbaum, M. and Rebelo, S. , When is the government spending multiplier large?, NBER Working Paper No. 15394
   Google Scholar
• Clemens , J and Miran , S . 2010 . The effects of state budget cuts on employment and income Working Paper, Harvard University
   Google Scholar
• Dalenberg , DR , Partridge , MD and Rickman , DS . 1998 . Public infrastructure: pork or jobs creator? . Public Finance Review , 26 : 24 – 52 .
   Google Scholar
• Dhont , T and Heylen , F . 2008 . Why do Europeans work (much) less? It is taxes and government spending . Economic Inquiry , 46 : 197 – 207 .
   Web of Science ®Google Scholar
• Engle , RF and Granger , CWJ . 1987 . Co-integration and error correction: representation, estimation, and testing . Econometrica , 55 : 251 – 76 .
   Web of Science ®Google Scholar
• Ferrara , P . 2009 . The Keynesians were wrong again The Wall Street Journal (Eastern Edition), 11 September 2009, p. A17
   Google Scholar
• Feyrer , J and Sacerdote , B . 2010 . Did the stimulus stimulate? Real time estimates of the effects of the American Readjustment and Recovery Act Working Paper, Dartmouth College
   Google Scholar
• Gatti , D . 2009 . Public spending, market imperfections, and unemployment . Eastern Economic Journal , 35 : 452 – 61 .
   Google Scholar
• Granger , CWJ and Newbold , P . 1974 . Spurious regressions in econometrics . Journal of Econometrics , 2 : 111 – 20 .
   Google Scholar
• Guis , M . 2006 . Impact of government spending on employment and output at the state level . The Journal of Business and Economic Studies , 12 : 27 – 32 .
   Google Scholar
• Hebous , S . 2011 . The effects of discretionary fiscal policy on macroeconomic aggregates: a reappraisal . Journal of Economic Surveys , 25 : 674 – 707 .
   Web of Science ®Google Scholar
• Hurlin , C . 2008 . Testing for Granger non causality in heterogeneous panels Working Papers, University of Orleans. Available at http://halshs.archives-ouvertes.fr/docs/00/22/44/34/PDF/Causality_WP.pdf (accessed 8 May 2012)
   Google Scholar
• Im , KS . 2005 . Lee, J. and Tieslau, M. , Panel LM unit roots tests with level shifts, Oxford Bulletin of Economics and Statistics, 67, 393–419
   Google Scholar
• Johansen , S . 1991 . Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models . Econometrica , 59 : 1551 – 80 .
   Web of Science ®Google Scholar
• Karras , G . 1993 . Employment and output effects of government spending: is government size important? . Economic Inquiry , 31 : 354 – 69 .
   Web of Science ®Google Scholar
• Krugman , P . 2009 . Too little of a good thing The New York Times, 1 November 2009
   Google Scholar
• Lynch , RG . 2004 . Rethinking Growth Strategies: How State and Local Taxes and Services Affect Economic Development , Washington , DC : Economic Policy Institute .
   Google Scholar
• Maddala , GS and Wu , S . 1999 . A comparative study of unit root tests with panel data and a new simple test . Oxford Bulletin of Economics and Statistics , 61 : 631 – 52 .
   Web of Science ®Google Scholar
• Monacelli , T and Perotti , R . 2009 . Fiscal policy wealth effects, and markups, NBER Working Papers No. 14584, National Bureau of Economic Research
   Google Scholar
• Pappa , E . 2009 . The effects of fiscal shocks on employment and real wages . International Economic Review , 50 : 217 – 44 .
   Web of Science ®Google Scholar
• Partridge , MD and Rickman , DS . 1995 . Differences in state unemployment rates: the role of labor and product market structural shifts . Southern Economic Journal , 62 : 89 – 196 .
   Web of Science ®Google Scholar
• Partridge , MD and Rickman , DS . 1997 . The dispersion of US state unemployment rates: the role of market and non-market equilibrium factors . Regional Studies , 31 : 593 – 606 .
   Web of Science ®Google Scholar
• Pedroni , P . 1999 . Critical values for cointegrating tests in heterogeneous panels with multiple regressors . Oxford Bulletin of Economics and Statistics , 61 : 653 – 70 .
   Web of Science ®Google Scholar
• Pedroni , P . 2001 . Purchasing power parity in cointegrated panels . The Review of Economics and Statistics , 83 : 727 – 31 .
   Web of Science ®Google Scholar
• Pedroni , P . 2004 . Panel cointegration; asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis . Econometric Theory , 20 : 597 – 625 .
   Web of Science ®Google Scholar
• Pesaran , MH . 2007 . A simple panel unit root test in the presence of cross-section dependence . Journal of Applied Econometrics , 22 : 265 – 317 .
   Web of Science ®Google Scholar
• Phelps , ES . 1994 . Structural Slumps: The Modern Equilibrium Theory of Unemployment, Interest, and Assets , Cambridge , MA : Harvard University Press .
   Google Scholar
• Phelps , ES . 1999 . Behind the structural boom: the role of asset valuations . The American Economic Review , 89 : 63 – 8 .
   Web of Science ®Google Scholar
• Rebelo , S . 2005 . Real business cycle models: past, present and future . Scandinavian Journal of Economics , 107 : 217 – 38 .
   Web of Science ®Google Scholar
• Riedel , BM . 2008 . Why government spending does not stimulate economic growth Backgrounder, The Heritage Foundation, No. 2208, 12 November 2008
   Google Scholar
• Stone , C . 2009 . Relief for States and Struggling Families Provides Substantial Boost to Employment , Washington , DC : Special Series: Economic Recovery Watch, Center on Budget and Public Priorities .
   Google Scholar
• Volden , C . 1999 . Asymmetric effects of intergovernmental grants: analysis and implications for welfare policy . Publius: The Journal of Federalism , 29 : 51 – 73 .
   Web of Science ®Google Scholar
• Wilson , D . 2011 . Fiscal spending multipliers: evidence from the 2009 American Recovery and Reinvestment Act Federal Reserve Bank of San Francisco Working Paper No. 2010-17
   Google Scholar
• Zoega , G . 1997 . Public consumption and unemployment . Scottish Journal of Political Economy , 44 : 269 – 79 .
   Web of Science ®Google Scholar