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Study Description

The Economic Impacts of Sequestration on the Massachusetts Economy

Daniel Hodge, Branner Stewart, Andrew Hall and Lindsay Koshgarian

(December 2013)

Triggered by the Budget Control Act of 2011, the mandated federal spending cuts enacted in 2013 known as "sequestration" reduced federal spending in the 2013 federal fiscal year (FFY) by $85 billion.  Massachusetts, with its reliance on federal research and defense procurement spending, has a substantial exposure to the types of federal programs that were most adversely affected by the sequestration.  Recognizing these vulnerabilities, the objective of this analysis was to provide a highly customized economic analysis of the near-term effects of sequestration on Massachusetts.  The analysis includes estimates of the full-range of federal spending cuts in Massachusetts and provides an estimate of the lost or foregone economic activity resulting from the cuts.     

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