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On the ease of overstating the fiscal stimulus in the US, 2008-9

Author: Joshua Aizenman; Gurnain Kaur Pasricha; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 15784.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This note shows that the aggregate fiscal expenditure stimulus in the United States, properly adjusted for the declining fiscal expenditure of the fifty states, was close to zero in 2009. While the Federal government stimulus prevented a net decline in aggregate fiscal expenditure, it did not stimulate the aggregate expenditure above its predicted mean. We discuss the implications of limitations on states' ability  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Joshua Aizenman; Gurnain Kaur Pasricha; National Bureau of Economic Research.
OCLC Number: 535094855
Notes: "February 2010."
Title from http://www.nber.org/papers/w15784 viewed Mar. 1, 2010.
Description: 1 online resource (14 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 15784.
Responsibility: Joshua Aizenman, Gurnain Kaur Pasricha.

Abstract:

This note shows that the aggregate fiscal expenditure stimulus in the United States, properly adjusted for the declining fiscal expenditure of the fifty states, was close to zero in 2009. While the Federal government stimulus prevented a net decline in aggregate fiscal expenditure, it did not stimulate the aggregate expenditure above its predicted mean. We discuss the implications of limitations on states' ability to run deficits for the design of fiscal stimulus at the federal level. We devote particular attention to intertemporal moral hazard concerns in a federal fiscal system, and ways to address these concerns.

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