Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280661 
Year of Publication: 
2023
Series/Report no.: 
AEI Economics Working Paper No. 2022-14
Version Description: 
Updated July 2023
Publisher: 
American Enterprise Institute (AEI), Washington, DC
Abstract: 
We analyze the extent to which US federal aid to state and local governments during the COVID-19 pandemic had effects that spilled over across state lines. We find that federal assistance had a positive overall effect on state and local government employment that stems largely from the direct effect of states' own aid allocation. To be more precise, we find that each $878,000 in federal assistance created or preserved one state or local job, a third of which was driven by cross-state spillovers. Our analysis of the effects of federal aid on aggregate economic activity generally finds null effects through either direct or spillover channels.
Document Type: 
Working Paper

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