However, virtually all variation in multipliers stems from diﬀerences in policies’ direct incidence onto households’ MPCs. Beneath these aggregate eﬀects are large spatial and sectoral spillovers from policies directed to any one ﬁrm or household. Empirically, we ﬁnd that multipliers vary substantially across policies, so targeting is important. Theoretically, we derive estimable formulae for the eﬀects of ﬁscal policies on aggregate GDP, or ﬁscal multipliers, and show how network structures determine their size.

How do these structures aﬀect the impact of ﬁscal policy and its optimal targeting? We study these questions in a model with input-output linkages, regional structure, and household heterogeneity in MPCs, consumption baskets, and shock exposures. Transportation Economics in the 21st CenturyĪdvanced economies feature complicated networks that connect households, ﬁrms, and regions.Training Program in Aging and Health Economics.The Roybal Center for Behavior Change in Health.Retirement and Disability Research Center.Measuring the Clinical and Economic Outcomes Associated with Delivery Systems.Improving Health Outcomes for an Aging Population.Early Indicators of Later Work Levels, Disease and Death.Conference on Research in Income and Wealth.Boosting Grant Applications from Faculty at MSIs.Productivity, Innovation, and Entrepreneurship.International Finance and Macroeconomics.

Networking by Laura Otis