Panel Data Analysis Of The American Recovery And Reinvestment Act
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The proposed study seeks to evaluate the merits of the American Recovery and Reinvestment Act of 2009 (commonly referred to as the “stimulus”) against its trifold objectives of: (a) creation of new jobs and protection of existing ones; (b) promotion of economic activity and sustainment of long-term growth; and (c) implementation of accountability and transparency in government spending. In a previous cross sectional analysis conducted by the authors, the stimulus provided by the government was found to have no effect on the housing prices. Therefore, the utility of the Act is questionable. In the current study, we look at one of the three modes in which the Act attempted to achieve its objectives and analyze it in depth. The analysis uses a 8-year panel data set across all 50 states in the United States. Results obtained from this analysis are expected to increase the efficacy of the implementable policy measures to ensure that the objectives and the results of the policy conform in similar future situations.