![](https://images.squarespace-cdn.com/content/v1/6148c2230560822b4f1ed1e9/1636391723213-4J8CP4O18VVTQ41T0NT1/unsplash-image-E3AQ09IW6oA.jpg)
Research
![Fiscal Stimulus in a Monetary Union: Evidence from U.S. Regions](https://images.squarespace-cdn.com/content/v1/6148c2230560822b4f1ed1e9/1632319384867-2SB2AF1ISHIZBZ417GCI/blog18.png)
Fiscal Stimulus in a Monetary Union: Evidence from U.S. Regions
Emi Nakamura and Jón Steinsson
American Economic Review, 104(3), 753-792, March 2014.
The response of output to state-level variation in prime military contract spending results in a local fiscal multiplier estimate of 1.5. This estimate suggests that the aggregate fiscal multiplier is large when monetary policy is unresponsive (e.g., at the zero lower bound).
Vox Article: Does Fiscal Stimulus Work in a Montary Union?
Data and Programs -- Technical Appendix -- Erratum -- How to Get Military Prime Contract Data