Government spending and retail prices: Regional evidence from the United States

Working Paper - September 2021 - nr. 181

Authors Larsen, Rasmus Bisgaard
Subject Inflation, wages and prices; Public finances and fiscal policy; Other economic analyses
Type Working paper
Year 2021
Published 8 September 2021
Abstract icon In this Working Paper, I study the effects of local government spending on local retail prices using retail scanner data from the United States. Estimates show that retail prices increase following an increase in government spending. I provide evidence which indicates that this cannot be accounted for by changes in marginal costs.