Abstract

IN Yuliya Demyanyk, Elena Loutskina, and Daniel Murphy's article in the October 2019 issue of this review (Vol. 101, No. 4, pp. 728–741), an error resulted in Table 3 being published with incorrect subscripts on the table regression's independent variables. The incorrect subscripts implied that the regression estimation sample was based on data between 2002 and 2005 rather than data that spanned the onset of the Great Recession (2006–2009). The text describing the table as well as the note below the table correctly referenced the time span of the data. The table with corrected subscripts is printed in full below.

Table 3.
Debt-Dependent Fiscal Multipliers
Income GrowthEmployment GrowthGDP Growth
A. DOD Spending 
Δ DOD Spending07–09 0.37*** 0.37*** −0.51* 0.23*** 0.24*** −0.25 0.78 0.74 −2.86** 
 (3.86) (3.86) (1.66) (3.60) (3.64) (1.16) (1.31) (1.31) (2.48) 
Debt-to-income2006  −0.03*** −0.04***  −0.03*** −0.03***  −0.02** −0.04*** 
  (5.79) (6.50)  (5.65) (5.65)  (2.00) (3.41) 
Δ DOD Spending07–09   0.61**   0.34**   2.54*** 
× Debt-to-income2006   (2.36)   (2.01)   (2.89) 
CBSA-level Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Number of observations 828 824 824 828 824 824 372 372 372 
Kleibergen-Paap LM test 13.25*** 13.21*** 8.73*** 13.25*** 13.21*** 8.73*** 5.60** 5.54** 8.02*** 
B. DOD Obligations 
Δ DOD Spending07–09 0.35*** 0.36*** −1.04* 0.23*** 0.23*** −0.58 0.54 0.51 −5.01** 
 (2.91) (2.89) (1.72) (2.91) (2.91) (1.55) (0.95) (0.94) (2.26) 
Debt-to-income2006  −0.03*** −0.04***  −0.03*** −0.03***  −0.02* −0.04*** 
  (5.43) (5.83)  (5.56) (5.33)  (1.93) (2.75) 
Δ DOD Obligations07–09   1.03**   0.60*   4.35** 
× Debt-to-income2006   (1.98)   (1.90)   (2.12) 
CBSA-level Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Number of observations 828 824 824 828 824 824 372 372 372 
Kleibergen-Paap LM test 9.10*** 9.06*** 5.36** 9.10*** 9.06*** 5.36** 2.32 2.31 3.76* 
Income GrowthEmployment GrowthGDP Growth
A. DOD Spending 
Δ DOD Spending07–09 0.37*** 0.37*** −0.51* 0.23*** 0.24*** −0.25 0.78 0.74 −2.86** 
 (3.86) (3.86) (1.66) (3.60) (3.64) (1.16) (1.31) (1.31) (2.48) 
Debt-to-income2006  −0.03*** −0.04***  −0.03*** −0.03***  −0.02** −0.04*** 
  (5.79) (6.50)  (5.65) (5.65)  (2.00) (3.41) 
Δ DOD Spending07–09   0.61**   0.34**   2.54*** 
× Debt-to-income2006   (2.36)   (2.01)   (2.89) 
CBSA-level Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Number of observations 828 824 824 828 824 824 372 372 372 
Kleibergen-Paap LM test 13.25*** 13.21*** 8.73*** 13.25*** 13.21*** 8.73*** 5.60** 5.54** 8.02*** 
B. DOD Obligations 
Δ DOD Spending07–09 0.35*** 0.36*** −1.04* 0.23*** 0.23*** −0.58 0.54 0.51 −5.01** 
 (2.91) (2.89) (1.72) (2.91) (2.91) (1.55) (0.95) (0.94) (2.26) 
Debt-to-income2006  −0.03*** −0.04***  −0.03*** −0.03***  −0.02* −0.04*** 
  (5.43) (5.83)  (5.56) (5.33)  (1.93) (2.75) 
Δ DOD Obligations07–09   1.03**   0.60*   4.35** 
× Debt-to-income2006   (1.98)   (1.90)   (2.12) 
CBSA-level Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Number of observations 828 824 824 828 824 824 372 372 372 
Kleibergen-Paap LM test 9.10*** 9.06*** 5.36** 9.10*** 9.06*** 5.36** 2.32 2.31 3.76* 

This table presents the results of the CBSA-level IV analysis of the effect of DOD spending on income, employment, and GDP growth between 2007 and 2009 following the regression equation (3). Standard errors are clustered by state. T-statistics are reported in parentheses. ***p<0.01, **p<0.05, and *p<0.1.