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• W2182068047 abstract "Conventional wisdom has it that in the 1930s fiscal policy did not work because it was not tried. This paper shows that fiscal policy was tried in 1936. The veterans' bonus of 1936 paid 2 percent of GDP to 3.2 million veterans; the typical veteran received a payment equal to per capita income. Multiple sources, including a household consumption survey, show that veterans spent the majority of their bonus. Point estimates of the MPC are between 0.6 and 0.75. Spending was concentrated on cars and housing in particular. (JEL E21, E32, E62, N32, N42)" @default.
• W2182068047 created "2016-06-24" @default.
• W2182068047 creator A5025602182 @default.
• W2182068047 date "2016-04-01" @default.
• W2182068047 modified "2023-10-05" @default.
• W2182068047 title "Fiscal Policy and Economic Recovery: The Case of the 1936 Veterans' Bonus" @default.
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• W2182068047 doi "https://doi.org/10.1257/aer.20130957" @default.
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