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Fiscal shocks, local specialization, and local labor markets

The main purpose of this research project is to explore the effects of fiscal policies on local economies and local labor markets, with a particular focus on aggregate demand effects. More specifically, mechanisms through which changes in taxes affecting households can also affect the behavior of firms and therefore induce sectoral reallocation will be investigated. Through sectoral reallocations, fiscal shocks might have altered the nature of jobs in local labor markets and contributed to desindustrialisation.