Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Schwartzman, Felipe / Wang, Pengfei


IMPACT FACTOR 2018: 0.674

CiteScore 2018: 0.70

SCImago Journal Rank (SJR) 2018: 0.605
Source Normalized Impact per Paper (SNIP) 2018: 0.694

Online
ISSN
1935-1690
See all formats and pricing
More options …

Simple Analytics and Empirics of the Government Spending Multiplier and Other "Keynesian" Paradoxes

Casey B Mulligan
Published Online: 2011-06-24 | DOI: https://doi.org/10.2202/1935-1690.2154

Factor supply increases (depresses) output for many of the same reasons that the government spending multiplier might be less (greater) than one. Data from three 2008-9 recession episodes—the labor supply shifts associated with the seasonal cycle, the 2009 federal minimum wage hike, and the collapse of residential construction spending—clearly show that markets absorb an increased supply of factors of production by increasing output. The findings contradict the “paradox of toil” and suggest that government purchases and marginal tax rates reduce private consumption, even during the recession.

Keywords: fiscal policy; factor markets; seasonal cycle

About the article

Published Online: 2011-06-24


Citation Information: The B.E. Journal of Macroeconomics, Volume 11, Issue 1, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.2154.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Julio Garín, Robert Lester, and Eric Sims
The Review of Economics and Statistics, 2018
[2]
Sofía Galán and Sergio Puente
The B.E. Journal of Economic Analysis & Policy, 2015, Volume 15, Number 1

Comments (0)

Please log in or register to comment.
Log in