## Heterogeneous Spending, Heterogeneous Multipliers

_IMF Working Papers, March 10, 2023_

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## Bibliographic details
- Authors: Umberto Muratori, Pedro Juarros, Daniel Valderrama
- Published: March 10, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400233777.001

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### Authors and publication
- By Umberto Muratori, Pedro Juarros, Daniel Valderrama
- March 10, 2023
- IMF Working Papers, Working Paper No. 2023/052
- Issue: 052
- Volume: 2023
- Pages: 50
- DOI: https://doi.org/10.5089/9798400233777.001
- ISBN: 9798400233777
- ISSN: 1018-5941
- Stock No: WPIEA2023052

### Research question and summary
- Core question: Do local fiscal multipliers depend on what the government purchases?
- Summary finding: Government purchases of services have larger effects on employment than spending on goods.
- Mechanism highlighted: Industries producing services are more labor-intensive than industries producing goods; this heterogeneity in labor intensity is an important mechanism behind the results.
- Implication: Spending directed toward labor-intensive industries generates stronger increases in employment and labor income relative to spending toward non-labor-intensive industries.

### Key findings (enumerated)
- Government purchases of services yield larger employment effects than government purchases of goods.
- Industries producing services are more labor-intensive than industries producing goods.
- Heterogeneity in labor intensity is an important mechanism driving heterogeneous local fiscal multipliers.
- Spending targeted to labor-intensive industries produces stronger increases in employment and labor income than spending targeted to non-labor-intensive industries.

### Subject and keywords
- Subject: Defense spending, Employment, Expenditure, Fiscal multipliers, Fiscal policy, Labor
- Keywords: copyright page, Defense spending, Employment, Fiscal multipliers, goods spending, government purchase, Heterogeneous Local Fiscal Multipliers, heterogeneous multiplier, Labor Intensity, Services and Goods Spending, services spending

### Access and formats
- Format noted: PDF (Download PDF)
- Citation example provided: Umberto Muratori, Pedro Juarros, and Daniel Valderrama. "Heterogeneous Spending, Heterogeneous Multipliers", IMF Working Papers 2023, 052 (2023), accessed 9/16/2026, https://doi.org/10.5089/9798400233777.001

*Source: Heterogeneous Spending, Heterogeneous Multipliers (IMF Working Paper No. 2023/052), March 10, 2023.*

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_Source: https://www.imf.org/en/publications/wp/issues/2023/03/10/heterogeneous-spending-heterogeneous-multipliers-530398_