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Showing 1 to 2 of 2 for “"Government spending multiplier"”.
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Essays on macroeconometrics and fiscal policy
How does government spending affect the macroeconomy? This question has been a long-standing question in macroeconomics. The key object of interest is the government spending multiplier which measures the change in output in response to a $1 increase in government spending. The central question of …
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The Size of the Multiplier: Comparing Alternate Views After the Great Recession
… theoretical frameworks and their outlook on the government spending, its effectiveness, the implied size of the multiplier and how they differed in empirical studies. This is followed by an estimation of the government multiplier for the major U.S. fiscal policy, namely the American Recovery and …