Andrew Leigh


Federal Member for Fraser

How Much Did the 2009 Fiscal Stimulus Boost Spending?


Using survey evidence, I estimate the impact of a $12 billion package of household payments delivered in Australia between March and May 2009. Forty percent of households who said that they received the payment reported having spent it. This is approximately twice the spending rate that has been recorded in ...

Can Redistributive State Taxes Reduce Inequality?


Do income taxes levied at a state or regional level affect the after-tax distribution of income? Or do workers merely move between regions, causing pre-tax wages to adjust? This question is relevant both in across states in the United States, and across countries within the European Union. Using the full ...

Who Benefits from the Earned Income Tax Credit? Incidence Among Recipients, Coworkers and Firms


How are hourly wages affected by the Earned Income Tax Credit? Two strategies are utilized to determine the relationship between the credit and hourly wages. First, I use variation in state EITC supplements, which magnify the effect of the federal EITC. I find that a 10 percent increase in the ...

Does Fiscal Policy Reduce Unemployment? Evidence from Pork-Barrel Spending

Andrew Leigh

Christine Neill


Studies of the effect of government spending on unemployment are potentially confounded by reverse causality. To address the endogeneity problem, we exploit variation in a pork- barrel road-building program, and find that higher government expenditure on road-building substantially reduces local unemployment.

JEL Codes: E24, E62, H30, H54,

Keywords: fiscal ...

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