Road to Prosperity Policy Paper | February 2026
Federal Funds in Puerto Rico: The ARRA Experience and Lessons for Economic Recovery
This policy paper examines how the American Recovery and Reinvestment Act of 2009 (ARRA) was allocated and administered in Puerto Rico and evaluates its short-run macroeconomic impact. The paper traces the flow of $6.3 billion in federal stimulus across spending types; assesses administrative performance and oversight findings; and estimates a counterfactual economic trajectory using a simple Interrupted Time Series (ITS) model. The findings suggest that the ARRA was associated with significantly cushioning Puerto Rico’s downturn between 2009 and 2013, while underscoring the limits of temporary federal stimulus in addressing long-standing structural weaknesses. The study draws broader lessons for the design and implementation of current and future recovery efforts.
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Road to Prosperity Policy Brief | June 2025
Breaks down key challenges to economic growth and solutions to overcome them.
The Center of Economic Renewal, Growth, and Excellence (CRECE) partnered with Intelligent Economics to explore Puerto Rico’s labor market and the impact of the welfare state on the labor participation rate. Our goal was to understand how social and public policies influence economic activity and workforce dynamics on the island. The findings of this study highlight the need to find a balance between social safety nets and labor market engagement. This study offers valuable insights that support the development of policies to promote economic growth, reduce poverty, and maximize workforce participation.
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Dive Deeper into Puerto Rico’s Economy with Centro CRECE’s Road to Prosperity Newsletter
Check out our Road to Prosperity Newsletter and keep abreast of Puerto Rico’s dynamic economic landscape. We are committed to delivering concise yet comprehensive analyses to help you make sense of the intricate factors influencing Puerto Rico’s economic trends. From industry overviews to policy impacts, each newsletter is crafted to be an essential source of information.
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