Alan Auerbach, Yuriy Gorodnichenko, Daniel Murphy, 04 April 2019

The strength of fiscal multipliers and spillovers have been the subject of intense debate in recent years.Using data on US Department of Defense contracts and income and employment outcomes, this column finds evidence of  strong positive spillovers across locations and industries, although the geographical spillovers appear to dissipate fairly quickly with distance. Both backward linkages and general equilibrium effects contribute to the positive spillovers.

Olivier Godart, Holger Görg, Christiane Krieger-Boden, 29 April 2013

The positive spillovers from multinationals to the productivity of their host-country suppliers are empirically well established. Usually, it is assumed that multinationals aid their suppliers by voluntarily sharing knowledge and cooperating with them. This column argues the spillovers might rather result from blunt pressure by the multinationals, forcing their suppliers to adopt new practices and to adapt to new standards.

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