Heavy Lifting - thoughts and web finds by an economist
|I also contribute to Division of Labour||Load HL's Front Page|
Wednesday, January 05, 2011
Macroeconomic Effects from Government Purchases and Taxes
Here's the abstract:
For U.S. annual data that include WWII, the estimated multiplier for defense spending is 0.6-0.7
In other words, the fiscal stimulus of the past couple years is unlikely to have had the impact the current crop of politicians claim. Barro's study would predict that $1.7 trillion spent would yield nothing discernible in terms of jobs, increased GDP, etc. On the surface it seems that his historical analysis might be consistent with our recent experience. Interesting reading and we know that the real answer to the question of the current stimulus plan's impact won't be forthcoming for a number of years.
Comments: Post a Comment
Le Chai - galerie du vin
Posts that contain Craig Depken per day for the last 90 days.
Heavy Lifting's Main Page
Money I Found Today
Heavy Lifting - Firehose style (56k warning)
- Macroeconomic Effects from Government Purchases and Taxes
Modified maystar design
powered by blogger