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Impacts of Government Spending Changes on Local Economies, No. 25-28

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Impacts of Government Spending Changes on Local Economies, No. 25-28

DATE: July 2025

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Local fiscal multipliers quantify how a change in government spending or taxation impacts economic output (such as GDP, income or employment) within a subnational region (such as a city, county or state). Multipliers measure both the direct and indirect effects on a local economy and can be useful for local policymakers in a variety of ways.

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Pinto, Santiago and Waddell, Sonya Ravindranath. "Impacts of Government Spending Changes on Local Economies, No. 25-28," Economic Brief (July 2025). https://fraser.stlouisfed.org/title/6034/item/689918, accessed on December 7, 2025.

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