gregmankiw.blogspot.com - 12/11/2008
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A key issue facing the new Obama administration is to what extent the economic stimulus should take the form of spending increases versus tax cuts. One way to think about the issue is the size of the fiscal policy multipliers. The multipliers measure bang for the buck--the amount of short-run ...
woodwardhall.wordpress.com - 12/11/2008
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woodwardhall.wordpress.com —
The Obama administration’s focus on infrastructure spending raises
the natural question of the effect of government purchases...
on total GDP. Does government spending stimulate other categories of spending, especially consumer spending? Or does ...
(more)
Financial Crisis and Recession
spaineconomy.blogspot.com - 12/13/2008
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spaineconomy.blogspot.com —
This, it seems, is the question of the
day. According to the IMF Spain’s economy faces a...
contraction of at least one percent next year. And the IMF stress that the risks to this forecast “remain on the downside” since the country’s real-estate market ...
(more)
So Just When Does Spain's Twin Deficit Problem Become ...
woodwardhall.wordpress.com - 12/11/2008
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woodwardhall.wordpress.com —
The Obama administration’s focus on infrastructure spending raises
the natural question of the effect of government purchases...
on total GDP. Does government spending stimulate other categories of spending, especially consumer spending? Or does ...
(more)
Measuring the Effect of Infrastructure Spending on GDP
Comments
Blog Reactions
"Measuring the Effect of Infrastructure Spending on GDP"
Economist's View —
... II.
Um, rationing? With the onset of World War II, numerous challenges
confronted the American people. The government found it necessary to
ration food, gas, and even clothing during that time. Americans were
asked to conserve on everything. With not a single person unaffected by
the war, rationing meant sacrifices for all. [Bangs head against the table] Update: Greg Mankiw:
Spending and Tax Multipliers: ...In their new blog, Bob
Hall and Susan Woodward look at ...
The multiplier is "one"
Marginal Revolution —
In case you were wondering.
And that's now a blog, written by Susan Woodward and Robert Hall, both impressive thinkers. Greg Mankiw offers additional comment.
Why is it surprising that tax cuts have a bigger effect than spending increases in the real world?
Kids Prefer Cheese —
... We're lucky if the "multiplier" on this crap is as big as 1.0. People, our government produces mass quantities of a particular product: pork. And every time it increases output, the arteries of our economy get a little bit more fatty and clogged. On average tax cuts free up more money to go toward more highly valued uses (at least if they reduce spending or are given to non-Ricardian agents). If you are wondering what I am ranting about check out this, this, and this. I guess I'd rather give my money to people who are going to use it ...
Thursday links: scary predictions
Abnormal Returns —
... Just what are the multipliers on tax cuts and spending increases? (Mankiw Blog) ...
"Can Economists Be Trusted?" "Are There Ever Any Wrong Answers in Economics?"
Economist's View —
... Greg has been pretty good at
saying there is a lot of uncertainty about the fiscal policy multipliers,
and about explaining why estimates differ across studies, and why he favors one set of estimates over another, so I don't want to
come down too hard on his disagreement with the 1.93 figure in his "favorite textbook", but it
does seem like he is defending Fama with a model that he does not believe in. ...
Economists against the Stimulus
Cato @ Liberty —
... to liberal, acknowledges that direct government spending on a direct program now is the best way to infuse economic growth and create jobs.
That statement is clearly false. As I have documented on this blog in recent weeks, skeptics about a spending stimulus include quite a few well-known economists, such as (in alphabetical order) Alberto Alesina, Robert Barro, Gary Becker, John Cochrane, Eugene Fama, Robert Lucas, Greg Mankiw, Kevin Murphy, Thomas Sargent, Harald Uhlig, and Luigi ...
Related Content
On the Obama Stimulus Plan-Becker
becker-posner-blog.com 1/12/2009 —
If the government increased its spending on infrastructure when the economy has full employment, its main impact would likely be to draw labor, capital, and raw materials away from various other activities. In effect, increased government spending ...
U.S. GDP
measuringworth.org 3/14/2009 — Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country during a given time period. There are two ways to measure GDP: Nominal GDP is the dollar value of production at current-year prices. For ...
GDP Negative as Consumer Spending Falls 3.1%
globaleconomicanalysis.blogspot.com 10/31/2008 — The US economy is sinking fast. We did no need to see the GDP numbers to know that but the figures are out. Here are the Third Quarter 2008 Advance GDP Numbers . Real gross domestic product -- the output of goods and services produced by labor and ...
Good economic news?
econbrowser.com 4/30/2009 — Today's GDP numbers were about what I was expecting. Although economic activity continued its sharp decline, if we continue to follow the script, things should improve.
The Bureau of Economic Analysis reported today that U.S. real GDP fell at a ...
Den Of Liars
market-ticker.denninger.net 12/24/2008 —
That would be our government. It of course includes Congress, and until proven otherwise, all who came from Congress , including our President-Elect. Yeah, I know, we only have one President at a time. That's fine. But here's reality: ...
Preliminary Analysis of the President’s Budget
cboblog.cbo.gov 3/21/2009 — We have just released our latest projections for the budget and economic outlook, updating the projections published in early January 2009. In addition, we have reviewed the President’s budgetary proposals contained in the February publication A New ...
The financial return on energy invested
europe.theoildrum.com 6/23/2009 —
Global GDP data from the USDA. Primary energy data and energy prices from the BP statistical reveiw of world energy 2009.
Global GDP has grown steadily and continuously since WWII, in step with a growing global population and primary energy ...
The Commercial Real Estate Bust
calculatedrisk.blogspot.com 11/10/2008 — Since investment in non-residential structures is slowing (especially malls, hotels, and offices), a key question is how did the commercial real estate (CRE) investment boom compare to the residential housing bubble? And how did the CRE boom compare ...
How Not to Stimulate the Economy
gregmankiw.blogspot.com 12/22/2008 — In thinking through the fiscal policy options and their implications, it might be useful to compare a few hypothetical, fanciful scenarios. Suppose that the federal government borrows some money and then... Case A : uses the money to give a lump-sum ...
Where We Are, Where We're Heading (2009)
market-ticker.denninger.net 1/1/2009 —
Let's score the 2008 edition predictions first: US will enter a recession : Confirmed by NBER. Check. Unemployment will rise north of 5% . Check (bigtime) Housing will not turn in 2008. Major check. The story in 2008 will be ...
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