Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

The B.E. Journal of Macroeconomics

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

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa / Nimark, Kristoffer / Wang, Pengfei

2 Issues per year


IMPACT FACTOR 2015: 0.164
5-year IMPACT FACTOR: 0.403

SCImago Journal Rank (SJR) 2015: 0.205
Source Normalized Impact per Paper (SNIP) 2015: 0.317
Impact per Publication (IPP) 2015: 0.222

Online
ISSN
1935-1690
See all formats and pricing
In This Section

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

Casey B Mulligan
  • 1University of Chicago,
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, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.2154. Export Citation

Comments (0)

Please log in or register to comment.
Log in