000			01214nam a22001457a 4500
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008			230411b ||||| |||| 00| 0 eng d
100			_aCarlino,Gerald et al _940037
245			_aPartisanship and fiscal policy in economic unions: Evidence from US states
260			_aThe American: Economic Reviews
300			_a113(3), Mar, 2023: p. 701-737
520			_aPartisanship of state governors affects the efficacy of US federal fiscal policy. Using close election data, we find partisan differences in the marginal propensity to spend federal intergovernmental transfers: Republican governors spend less than Democratic governors. Correspondingly, Republican-led states have lower debt, (delayed) lower taxes, and initially lower economic activity. A New Keynesian model of partisan states in a monetary union implies sizable aggregate effects: The intergovernmental transfer impact multiplier rises by 0.58 if Republican governors spend like Democratic governors, but due to delayed tax cuts, the long-run multiplier is higher with more Republican governors, generating an intertemporal policy trade-off. – Reproduced
773			_aThe American: Economic Reviews
906			_aFISCAL POLICY
942			_cAR