https://macropaperwarehouse.com/authors/alan-j-auerbach/Alan J AuerbachHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/demand-stimulus-as-social-policy/https://macropaperwarehouse.com/papers/demand-stimulus-as-social-policy/<p>This paper estimates the distributional and social consequences of Department of Defense (DOD) contract spending using a city-level (CBSA) panel dataset spanning 2005–2016. The research question is whether demand stimulus — specifically DOD spending, the largest category of U.S. discretionary government spending — has differential effects across demographic groups and whether it improves social outcomes typically targeted by dedicated government programs. A secondary question is whether these effects are specific to DOD spending or common to any demand shock.</p>