The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Transportation spending often plays a prominent role in government efforts to stimulate the economy during downturns. Yet, despite the frequent use of transportation spendi...

In many states, tax and expenditure limits constrain government spending. All but one state have adopted balanced-budget rules. Some governors have the power to veto individual budget items (the so-called line-item veto). This article reviews the evidence linking fiscal and political institutions to state taxation, spending, and debt. It appears that properly designed fiscal and political insti...

We construct a government spending news series in Korea based on Fisher and Peters (2010) by exploiting market-weighted sum of excess stock returns military contractors Korea. then use this estimate structural VAR model to evaluate the effects spending. As result, GDP show statistically significant responses shocks. The accumulated multiplier peaks after four quarters, five-year cumulative is c...