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| economic multiplier effect definition: The Keynesian Multiplier Claude Gnos, Louis-Philippe Rochon, 2008-05-25 The multiplier is a central concept in Keynesian and post-Keynesian economics. It is largely what justifies activist full-employment fiscal policy: an increase in fiscal expenditures contributing to multiple rounds of spending, thereby financing itself. Yet, while a copingstone of post-Keynesian theory, it is not universally accepted by |
| economic multiplier effect definition: The General Theory of Employment, Interest and Money John Maynard Keynes, 1989 |
| economic multiplier effect definition: General Theory Of Employment , Interest And Money John Maynard Keynes, 2016-04 John Maynard Keynes is the great British economist of the twentieth century whose hugely influential work The General Theory of Employment, Interest and * is undoubtedly the century's most important book on economics--strongly influencing economic theory and practice, particularly with regard to the role of government in stimulating and regulating a nation's economic life. Keynes's work has undergone significant revaluation in recent years, and Keynesian views which have been widely defended for so long are now perceived as at odds with Keynes's own thinking. Recent scholarship and research has demonstrated considerable rivalry and controversy concerning the proper interpretation of Keynes's works, such that recourse to the original text is all the more important. Although considered by a few critics that the sentence structures of the book are quite incomprehensible and almost unbearable to read, the book is an essential reading for all those who desire a basic education in economics. The key to understanding Keynes is the notion that at particular times in the business cycle, an economy can become over-productive (or under-consumptive) and thus, a vicious spiral is begun that results in massive layoffs and cuts in production as businesses attempt to equilibrate aggregate supply and demand. Thus, full employment is only one of many or multiple macro equilibria. If an economy reaches an underemployment equilibrium, something is necessary to boost or stimulate demand to produce full employment. This something could be business investment but because of the logic and individualist nature of investment decisions, it is unlikely to rapidly restore full employment. Keynes logically seizes upon the public budget and government expenditures as the quickest way to restore full employment. Borrowing the * to finance the deficit from private households and businesses is a quick, direct way to restore full employment while at the same time, redirecting or siphoning |
| economic multiplier effect definition: Finance & Development, September 2014 International Monetary Fund. External Relations Dept., 2014-08-25 This chapter discusses various past and future aspects of the global economy. There has been a huge transformation of the global economy in the last several years. Articles on the future of energy in the global economy by Jeffrey Ball and on measuring inequality by Jonathan Ostry and Andrew Berg are also illustrated. Since the 2008 global crisis, global economists must change the way they look at the world. |
| economic multiplier effect definition: Fiscal Policy after the Financial Crisis Alberto Alesina, Francesco Giavazzi, 2013-06-25 The recent recession has brought fiscal policy back to the forefront, with economists and policy makers struggling to reach a consensus on highly political issues like tax rates and government spending. At the heart of the debate are fiscal multipliers, whose size and sensitivity determine the power of such policies to influence economic growth. Fiscal Policy after the Financial Crisis focuses on the effects of fiscal stimuli and increased government spending, with contributions that consider the measurement of the multiplier effect and its size. In the face of uncertainty over the sustainability of recent economic policies, further contributions to this volume discuss the merits of alternate means of debt reduction through decreased government spending or increased taxes. A final section examines how the short-term political forces driving fiscal policy might be balanced with aspects of the long-term planning governing monetary policy. A direct intervention in timely debates, Fiscal Policy after the Financial Crisis offers invaluable insights about various responses to the recent financial crisis. |
| economic multiplier effect definition: Austerity Alberto Alesina, Carlo Favero, Francesco Giavazzi, 2020-12 A revealing look at austerity measures that succeed—and those that don't Fiscal austerity is hugely controversial. Opponents argue that it can trigger downward growth spirals and become self-defeating. Supporters argue that budget deficits have to be tackled aggressively at all times and at all costs. Bringing needed clarity to one of today's most challenging economic issues, three leading policy experts cut through the political noise to demonstrate that there is not one type of austerity but many. Austerity assesses the relative effectiveness of tax increases and spending cuts at reducing debt, shows that austerity is not necessarily the kiss of death for political careers as is often believed, and charts a sensible approach based on data analysis rather than ideology. |
| economic multiplier effect definition: The Macroeconomic Effects of Public Investment Mr.Abdul Abiad, Davide Furceri, Petia Topalova, 2015-05-04 This paper provides new evidence of the macroeconomic effects of public investment in advanced economies. Using public investment forecast errors to identify the causal effect of government investment in a sample of 17 OECD economies since 1985 and model simulations, the paper finds that increased public investment raises output, both in the short term and in the long term, crowds in private investment, and reduces unemployment. Several factors shape the macroeconomic effects of public investment. When there is economic slack and monetary accommodation, demand effects are stronger, and the public-debt-to-GDP ratio may actually decline. Public investment is also more effective in boosting output in countries with higher public investment efficiency and when it is financed by issuing debt. |
| economic multiplier effect definition: The Effectiveness of Fiscal Policy in Stimulating Economic Activity Richard Hemming, Selma Mahfouz, Michael Kell, 2002-12 This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers. |
| economic multiplier effect definition: Multipliers Liz Wiseman, Greg McKeown, 2010-06-15 Are you a genius or a genius maker? We've all had experience with two dramatically different types of leaders. The first type drain intelligence, energy, and capability from the ones around them and always need to be the smartest ones in the room. These are the idea killers, the energy sappers, the diminishers of talent and commitment. On the other side of the spectrum are leaders who use their intelligence to amplify the smarts and capabilities of the people around them. When these leaders walk into a room, lightbulbs go off over people's heads, ideas flow, and problems get solved. These are the leaders who inspire employees to stretch themselves to deliver results that surpass expectations. These are the Multipliers. And the world needs more of them, especially now, when leaders are expected to do more with less. In this engaging and highly practical book, leadership expert Liz Wiseman and management consultant Greg McKeown explore these two leadership styles, persuasively showing how Multipliers can have a resoundingly positive and profitable effect on organizations—getting more done with fewer resources, developing and attracting talent, and cultivating new ideas and energy to drive organizational change and innovation. In analyzing data from more than 150 leaders, Wiseman and McKeown have identified five disciplines that distinguish Multipliers from Diminishers. These five disciplines are not based on innate talent; indeed, they are skills and practices that everyone can learn to use—even lifelong and recalcitrant Diminishers. Lively, real-world case studies and practical tips and techniques bring to life each of these principles, showing you how to become a Multiplier too, whether you are a new or an experienced manager. Just imagine what you could accomplish if you could harness all the energy and intelligence around you. Multipliers will show you how. |
| economic multiplier effect definition: The Economic Effects of Fiscal Consolidation with Debt Feedback Mr.Marcello M. Estevão, Issouf Samaké, 2013-05-31 The past several years of recession and slow recovery have raised much interest on the effect of fiscal stimulus on economic activity, even as high public debts in many countries would call for fiscal consolidation. To evaluate the delicate balance between stimulus and consolidation requires measuring the size of fiscal multipliers, which often depends on having quarterly data so that exogenous fiscal policy shocks can be identified. We estimate fiscal multipliers using a novel methodology for identifying fiscal shocks within a structural vector autoregressive approach using annual data while controling for debt feedback effects. The estimation focuses on regions with scarce quarterly data (mostly low-income countries), and uses results for advanced economies, emerging market countries, and other broad groupings for which alternative estimates are available to validate the methodology. Differently from advanced and emerging market economies, fiscal consolidation in low-income countries has only a small temporary negative effect on growth while raising medium-term output. Shifting the composition of public spending toward capital expenditure further supports long-run growth. |
| economic multiplier effect definition: Celebration Capitalism and the Olympic Games Jules Boykoff, 2013-08-15 The Olympic Games have become the world’s greatest media and marketing event—a global celebration of exceptional athletics gilded with corporate cash. Huge corporations vie for association with the Olympic Image in the hope of gaining a worldwide marketing audience of billions. In this provocative critical study of the contemporary Olympics, Jules Boykoff argues that the Games have become a massive planned economy designed to shield the rich from risk while providing them with a spectacle to treasure. Placing political economy at the center of the analysis, and drawing on interdisciplinary research in sociology, politics, geography, history, and economics, Boykoff develops an innovative theory of celebration capitalism, the manipulation of state actors as partners that drives us towards public–private partnerships in which the public pays and the private profits. He argues that the Athens Games in 2004 marked the full emergence of celebration capitalism, with London 2012 representing its quintessential expression, characterized by a state of exception, unfettered commercialism, repression of dissent, questionable sustainability claims, and the complicity of the mainstream media. Controversial, challenging, and forthright, this book opens up a fascinating new avenue for understanding the contemporary Olympics in the context of global capitalist society. It is essential reading for anybody with an interest in the Olympic Games, the relationship between sport and society, or global politics and culture. |
| economic multiplier effect definition: Does Fiscal Policy Matter? Alan S. Blinder, Robert M. Solow, 1972 |
| economic multiplier effect definition: A Simple Method to Compute Fiscal Multipliers Nicoletta Batini, Luc Eyraud, Anke Weber, 2014-06-09 Fiscal multipliers are important tools for macroeconomic projections and policy design. In many countries, little is known about the size of multipliers, as data availability limits the scope for empirical research. For these countries, we propose a simple method—dubbed the “bucket approach”—to come up with reasonable multiplier estimates. The approach bunches countries into groups (or “buckets”) with similar multiplier values, based on their characteristics. It also takes into account the effect of some temporary factors, such as the state of the business cycle. |
| economic multiplier effect definition: The Economic Consequences of the Peace John Maynard Keynes, 1920 John Maynard Keynes, then a rising young economist, participated in the Paris Peace Conference in 1919 as chief representative of the British Treasury and advisor to Prime Minister David Lloyd George. He resigned after desperately trying and failing to reduce the huge demands for reparations being made on Germany. The Economic Consequences of the Peace is Keynes' brilliant and prophetic analysis of the effects that the peace treaty would have both on Germany and, even more fatefully, the world. |
| economic multiplier effect definition: Social Economics Gary Stanley Becker, Kevin M. Murphy, 2009-07 Economists assume that people make choices based on their preferences and their budget constraints. The preferences and values of others play no role in the standard economic model. This feature has been sharply criticized by other social scientists, who believe that the choices people make are also conditioned by social and cultural forces. Economists, meanwhile, are not satisfied with standard sociological and anthropological concepts and explanations because they are not embedded in a testable, analytic framework. In this book, Gary Becker and Kevin Murphy provide such a framework by including the social environment along with standard goods and services in their utility functions. These extended utility functions provide a way of analyzing how changes in the social environment affect people's choices and behaviors. More important, they also provide a way of analyzing how the social environment itself is determined by the interactions of individuals. Using this approach, the authors are able to explain many puzzling phenomena, including patterns of drug use, how love affects marriage patterns, neighborhood segregation, the prices of fine art and other collectibles, the social side of trademarks, the rise and fall of fads and fashions, and the distribution of income and status. |
| economic multiplier effect definition: Regional Multipliers , 1986 |
| economic multiplier effect definition: Capitalism without Capital Jonathan Haskel, Stian Westlake, 2018-10-16 Early in the twenty-first century, a quiet revolution occurred. For the first time, the major developed economies began to invest more in intangible assets, like design, branding, and software, than in tangible assets, like machinery, buildings, and computers. For all sorts of businesses, the ability to deploy assets that one can neither see nor touch is increasingly the main source of long-term success. But this is not just a familiar story of the so-called new economy. Capitalism without Capital shows that the growing importance of intangible assets has also played a role in some of the larger economic changes of the past decade, including the growth in economic inequality and the stagnation of productivity. Jonathan Haskel and Stian Westlake explore the unusual economic characteristics of intangible investment and discuss how an economy rich in intangibles is fundamentally different from one based on tangibles. Capitalism without Capital concludes by outlining how managers, investors, and policymakers can exploit the characteristics of an intangible age to grow their businesses, portfolios, and economies. |
| economic multiplier effect definition: Money and Government Robert Skidelsky, 2018-11-13 A critical examination of economics' past and future, and how it needs to change, by one of the most eminent political economists of our time The dominant view in economics is that money and government should play only minor roles in economic life. Economic outcomes, it is claimed, are best left to the invisible hand of the market. Yet these claims remain staunchly unsettled. The view taken in this important new book is that the omnipresence of uncertainty makes money and government essential features of any market economy. Since Adam Smith, classical economics has espoused non-intervention in markets. The Great Depression brought Keynesian economics to the fore; but stagflation in the 1970s brought a return to small-state orthodoxy. The 2008 global financial crash should have brought a reevaluation of that stance; instead the response has been punishing austerity and anemic recovery. This book aims to reintroduce Keynes’s central insights to a new generation of economists, and embolden them to return money and government to the starring roles in the economic drama that they deserve. |
| economic multiplier effect definition: How Big (Small?) are Fiscal Multipliers? Ethan Ilzetzki, Mr.Enrique G. Mendoza, Mr.Carlos A. Végh Gramont, 2011-03-01 We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset of government expenditure in 44 countries, we find that (i) the output effect of an increase in government consumption is larger in industrial than in developing countries, (ii) the fisscal multiplier is relatively large in economies operating under predetermined exchange rate but zero in economies operating under flexible exchange rates; (iii) fiscal multipliers in open economies are lower than in closed economies and (iv) fiscal multipliers in high-debt countries are also zero. |
| economic multiplier effect definition: Introduction to Modern Economic Growth Daron Acemoglu, 2008-12-15 From Nobel Prize–winning economist Daron Acemoglu, an incisive introduction to economic growth Introduction to Modern Economic Growth is a groundbreaking text from one of today's leading economists. Daron Acemoglu gives graduate students not only the tools to analyze growth and related macroeconomic problems, but also the broad perspective needed to apply those tools to the big-picture questions of growth and divergence. And he introduces the economic and mathematical foundations of modern growth theory and macroeconomics in a rigorous but easy to follow manner. After covering the necessary background on dynamic general equilibrium and dynamic optimization, the book presents the basic workhorse models of growth and takes students to the frontier areas of growth theory, including models of human capital, endogenous technological change, technology transfer, international trade, economic development, and political economy. The book integrates these theories with data and shows how theoretical approaches can lead to better perspectives on the fundamental causes of economic growth and the wealth of nations. Innovative and authoritative, this book is likely to shape how economic growth is taught and learned for years to come. Introduces all the foundations for understanding economic growth and dynamic macroeconomic analysis Focuses on the big-picture questions of economic growth Provides mathematical foundations Presents dynamic general equilibrium Covers models such as basic Solow, neoclassical growth, and overlapping generations, as well as models of endogenous technology and international linkages Addresses frontier research areas such as international linkages, international trade, political economy, and economic development and structural change An accompanying Student Solutions Manual containing the answers to selected exercises is available (978-0-691-14163-3/$24.95). See: https://press.princeton.edu/titles/8970.html For Professors only: To access a complete solutions manual online, email us at: acemoglusolutions@press.princeton.edu |
| economic multiplier effect definition: The Great Mental Models, Volume 1 Shane Parrish, Rhiannon Beaubien, 2024-10-15 Discover the essential thinking tools you’ve been missing with The Great Mental Models series by Shane Parrish, New York Times bestselling author and the mind behind the acclaimed Farnam Street blog and “The Knowledge Project” podcast. This first book in the series is your guide to learning the crucial thinking tools nobody ever taught you. Time and time again, great thinkers such as Charlie Munger and Warren Buffett have credited their success to mental models–representations of how something works that can scale onto other fields. Mastering a small number of mental models enables you to rapidly grasp new information, identify patterns others miss, and avoid the common mistakes that hold people back. The Great Mental Models: Volume 1, General Thinking Concepts shows you how making a few tiny changes in the way you think can deliver big results. Drawing on examples from history, business, art, and science, this book details nine of the most versatile, all-purpose mental models you can use right away to improve your decision making and productivity. This book will teach you how to: Avoid blind spots when looking at problems. Find non-obvious solutions. Anticipate and achieve desired outcomes. Play to your strengths, avoid your weaknesses, … and more. The Great Mental Models series demystifies once elusive concepts and illuminates rich knowledge that traditional education overlooks. This series is the most comprehensive and accessible guide on using mental models to better understand our world, solve problems, and gain an advantage. |
| economic multiplier effect definition: Modern Money Theory L. Randall Wray, 2015-09-22 This second edition explores how money 'works' in the modern economy and synthesises the key principles of Modern Money Theory, exploring macro accounting, currency regimes and exchange rates in both the USA and developing nations. |
| economic multiplier effect definition: Economic Growth, second edition Robert J. Barro, Xavier I. Sala-I-Martin, 2003-10-10 The long-awaited second edition of an important textbook on economic growth—a major revision incorporating the most recent work on the subject. This graduate level text on economic growth surveys neoclassical and more recent growth theories, stressing their empirical implications and the relation of theory to data and evidence. The authors have undertaken a major revision for the long-awaited second edition of this widely used text, the first modern textbook devoted to growth theory. The book has been expanded in many areas and incorporates the latest research. After an introductory discussion of economic growth, the book examines neoclassical growth theories, from Solow-Swan in the 1950s and Cass-Koopmans in the 1960s to more recent refinements; this is followed by a discussion of extensions to the model, with expanded treatment in this edition of heterogenity of households. The book then turns to endogenous growth theory, discussing, among other topics, models of endogenous technological progress (with an expanded discussion in this edition of the role of outside competition in the growth process), technological diffusion, and an endogenous determination of labor supply and population. The authors then explain the essentials of growth accounting and apply this framework to endogenous growth models. The final chapters cover empirical analysis of regions and empirical evidence on economic growth for a broad panel of countries from 1960 to 2000. The updated treatment of cross-country growth regressions for this edition uses the new Summers-Heston data set on world income distribution compiled through 2000. |
| economic multiplier effect definition: Methodologies to Estimate the Economic Impacts of Disruptions to the Goods Movement System , 2012 TRB's National Cooperative Highway Research Program (NCHRP) Report 732: Methodologies to Estimate the Economic Impacts of Disruptions to the Goods Movement System describes the impacts of bottlenecks and interruptions to the flow of goods through the nation's major freight corridors and intermodal connectors, the dynamics of that flow in response to disruptions, and the full economic impact on public and private entities beyond just the critical infrastructure and the carriers that depend on that flow.--Publication information. |
| economic multiplier effect definition: Economic Analysis and Infrastructure Investment Edward L. Glaeser, James M. Poterba, 2021-11-11 Policy-makers often call for expanding public spending on infrastructure, which includes a broad range of investments from roads and bridges to digital networks that will expand access to high-speed broadband. Some point to near-term macro-economic benefits and job creation, others focus on long-term effects on productivity and economic growth. This volume explores the links between infrastructure spending and economic outcomes, as well as key economic issues in the funding and management of infrastructure projects. It draws together research studies that describe the short-run stimulus effects of infrastructure spending, develop new estimates of the stock of U.S. infrastructure capital, and explore the incentive aspects of public-private partnerships (PPPs). A salient issue is the treatment of risk in evaluating publicly-funded infrastructure projects and in connection with PPPs. The goal of the volume is to provide a reference for researchers seeking to expand research on infrastructure issues, and for policy-makers tasked with determining the appropriate level of infrastructure spending-- |
| economic multiplier effect definition: Essential Economics Matthew Bishop, 2004-05-01 |
| economic multiplier effect definition: The Economy The Core Team, 2022-07 A complete introduction to economics and the economy taught in undergraduate economics and masters courses in public policy. CORE's approach to teaching economics is student-centred and motivated by real-world problems and real-world data. The only introductory economics text to equip students to address today's pressing problems by mastering the conceptual and quantitative tools of contemporary economics. THE ECONOMY: is a new approach that integrates recent developments in economics including contract theory, strategic interaction, behavioural economics, and financial instability; challenges students to address inequality, climate change, economic instability, wealth creation and innovation, and other problems; provides a unified treatment of micro- and macroeconomics; motivates all models and concepts by evidence and real-world applications. |
| economic multiplier effect definition: The American Business Cycle Robert J. Gordon, 2007-11-01 In recent decades the American economy has experienced the worst peace-time inflation in its history and the highest unemployment rate since the Great Depression. These circumstances have prompted renewed interest in the concept of business cycles, which Joseph Schumpeter suggested are like the beat of the heart, of the essence of the organism that displays them. In The American Business Cycle, some of the most prominent macroeconomics in the United States focuses on the questions, To what extent are business cycles propelled by external shocks? How have post-1946 cycles differed from earlier cycles? And, what are the major factors that contribute to business cycles? They extend their investigation in some areas as far back as 1875 to afford a deeper understanding of both economic history and the most recent economic fluctuations. Seven papers address specific aspects of economic activity: consumption, investment, inventory change, fiscal policy, monetary behavior, open economy, and the labor market. Five papers focus on aggregate economic activity. In a number of cases, the papers present findings that challenge widely accepted models and assumptions. In addition to its substantive findings, The American Business Cycle includes an appendix containing both the first published history of the NBER business-cycle dating chronology and many previously unpublished historical data series. |
| economic multiplier effect definition: Economics Campbell R. McConnell, Stanley L. Brue, 1999 |
| economic multiplier effect definition: Guidance for Communicating the Economic Impacts of Transportation Investments Hagler Bailly Services, Inc, National Cooperative Highway Research Program, 1999 |
| economic multiplier effect definition: Macroeconomics Olivier Blanchard, 2021 This print textbook is available for students to rent for their classes. The Pearson print rental program provides students with affordable access to learning materials, so they come to class ready to succeed. For intermediate courses in economics. A unified view of the latest macroeconomic events In Macroeconomics, Blanchard presents an integrated, global view of macroeconomics, enabling students to see the connections between goods markets, financial markets, and labor markets worldwide. Organized into two parts, the text contains a core section that focuses on short-, medium-, and long-run markets and two major extensions that offer more in-depth coverage of the issues at hand. From the major economic crisis that engulfed the world in the late 2000s, to monetary policy in the US, to the problems of the Euro area, and growth in China, the text helps students make sense not only of current macroeconomic events but also of those that may unfold in the future. Integrated, detailed boxes in the 8th Edition have been updated to convey the life of macroeconomics today, reinforce lessons from the models, and help students employ and develop their analytical and evaluative skills. Also available with MyLab Economics By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student. |
| economic multiplier effect definition: Intermediate Macroeconomics Robert J. Barro, Angus Chu, Guido Cozzi, 2017-03-22 This brand new EMEA edition of Robert Barro's popular text brings an EMEA perspective whilst also being fully updated to reflect the macroeconomics of a post-financial crisis world. Starting with long-run macroeconomics, this text explores some of the key theories and models in macroeconomics such as the Keynesian model and the business-cycle model, finishing with extending the equilibrium model to the open economy. This exciting new edition provides an accurate and unified presentation of current macroeconomic thought whilst maintaining Professor Barro's original vision for his textbook.This edition also comes with the optional extra of Aplia, a comprehensive online learning assessment tool with auto-graded randomised questions to test students' understanding. |
| economic multiplier effect definition: Finance, Money, And Banking , 2006-02-01 |
| economic multiplier effect definition: Hunger in the Contemporary World Amartya Sen, Development Economics Research Programme (Suntory-Toyota International Centre for Economics and Related Disciplines), 1997 |
| economic multiplier effect definition: The Green Book Great Britain. Treasury, 2003 This new edition incorporates revised guidance from H.M Treasury which is designed to promote efficient policy development and resource allocation across government through the use of a thorough, long-term and analytically robust approach to the appraisal and evaluation of public service projects before significant funds are committed. It is the first edition to have been aided by a consultation process in order to ensure the guidance is clearer and more closely tailored to suit the needs of users. |
| economic multiplier effect definition: Rebound Effect Steve Sorrell, 2007 |
| economic multiplier effect definition: Introduction to Tourism' 2007 Ed. F. Leuterio, 2007 |
| economic multiplier effect definition: Economics Patrick J. Welch, Gerry F. Welch, 2016-02-29 Economics: Theory & Practice, 11th Edition by Patrick J. Welch and Gerry F. Welch connects theory to the practice of economics and the everyday world through examples and applications, debates, and critical thinking cases—some that are classics in the field and others that are fresh and up-to-date. Its balanced coverage of microeconomics and macroeconomics, flexibility in topic coverage order, and the use of appendices and chapter sections to shorten or deepen course material offer a choice of levels and sequences for a course. |
| economic multiplier effect definition: Macroeconomic Effects of Tax Rate and Base Changes Frederico Lima, Era Dabla-Norris, 2022 This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected yield, motivation, and announcement and implementation dates of more than 2,000 tax measures across 10 OECD countries. Using this data, we then analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further differentiating between changes in personal income, corporate income, and value added taxes. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types. |
| economic multiplier effect definition: CTH - Introduction to Tourism Economics BPP Learning Media, 2011-07-01 BPP Learning Media is proud to be the official publisher for CTH. Our CTH Study Guides provide the perfect tailor-made learning resource for the CTH examinations and are also a useful source of reference and information for those planning a career in the hospitality and tourism industries. |
W 644 A Primer in Economic Multipliers and Impact Analysis …
Concept of a Multiplier What is an economic multiplier? As applied to a local community, a multiplier is a measure of how dollars interjected into a community are respent, thereby leading …
Rules of Thumb for Interpreting Economic Multipliers
The economic multiplier is named after the multiplicative effect that takes place in an economy following some initial injection (or withdrawal) of economic stimulus. It is calculated as the ratio …
Toolkit: Multiplier Effects - What Works Growth
The average local multiplier is close to one: for each additional job in the tradable sector, 0.9 jobs are created in the non-tradable sector. • The impact of additional jobs in the tradable sector on …
The Multiplier Model - Wake Forest University
Mar 3, 2021 · The basic idea behind the multiplier model is that—up to the limit set by “full employment” or potential GDP—the actual level of employment and output depends on the …
CHAPTER 34 : The multiplier - knockouteconomics.com
Multiplier effect : an increase in investment or other injection will lead to an even greater increase in income ( assuming the injection is not determined by income)
UNIT-IV - gacbe.ac.in
WHAT IS A MULTIPLIER? In economics, a multiplier broadly refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic …
2.4.4 The multiplier - exampaperspractice.co.uk
• Positive multiplier: when an initial increase in an injection (or a decrease in leakage) leads to a greater final increase in GDP • The effect of the multiplier is to magnify exogenous changes.
MULTIPLIER EFFECTS IN LOCAL AND REGIONAL …
An increase (or decrease) in income or employment in a local or regional economy triggered by the emergence of a new type of economic activity is called a multiplier effect. The multiplier is …
The Local Multiplier Effect - American Independent Business …
local multiplier for spending at independent businesses than chains. These studies measured the direct and indirect impacts to determine the base level local economic activity of a purchase …
Economic Multipliers: How Communities Can Use Them for …
The income multiplier measures the total increase in income in the local economy resulting from a $1 increase in income received by workers in the exporting industry. Multiplying the initial …
The Theory of the Multiplier - JSTOR
THE MULTIPLIER is the marginal effect of a change of one economic variable upon another economic variable, of which the first variable is a component; for instance, the marginal effect …
5 A SAM and Multiplier Analysis: Economic Linkages and …
5 A SAM and Multiplier Analysis: Economic Linkages and Multiplier Effects 5.1 What are the Economic Linkages and Multiplier Effects? The strongest argument in favour of the Walras …
Annex: Multiplier Effects - What Works Growth
observed input-output linkages across firms and predict the multiplier impact for the UK as a whole. In contrast, the multipliers in our toolkit are based on estimating what happens in …
The Multiplier Effect Quick Check Key Terms - Career …
Multiplier Effect: The multiplier effect describes an economic action that changes economic growth. Keynesian Economics: The economic theories of John Maynard Keynes that place …
Determinants and implications of the tourism multiplier effect …
Using the Stepwise regression and a series of indicators that associate the economic, social and spatial dimensions of European tourism, the main determinants of multiplier effects (on GDP …
The Multiplier Effect of Fiscal Policy - University at Albany
We analyze the multiplier effect of fiscal policy—changes in government expenditure and taxation. The key result is that an increase in the government budget deficit causes a proportional …
Local Multipliers - University of California, Berkeley
multiplier effect depends on three factors. First, it depends on consumer preferences for nontrad-ables and the technology in the nontradable sec-tor. More labor intensive technologies result in …
Measuring the Multiplier Effects of Tourism industry to the …
We will initially give an overview of the definitions and concepts developed in the literature for the measurement and evaluation of the economic impact of tourism, focusing in on the …
Crisis Economics - Scholars at Harvard
quantify how that “multiplier” would function in different economic conditions. But most Keynesian economists have agreed that the multiplier effect of government spending is larger than that of …
The Microfoundations of the Keynesian Multiplier Process
economic theory in the early 1970s was that it did not have to deal with the thorny details of disequilibrium adjustment. Instead it was based on the premise that one can restrict atten- ...
RRRIMSSS - Bureau of Economic Analysis
sess the potential economic impacts of various projects. This model produces multipliers that are used in economic impact studies to estimate the total impact of a project on a region. The idea …
Multiplier effects in local and regional development - CORE
type of economic activity is called a multiplier effect. The multiplier is an attempt to quantify the power of a given economic trigger. The aim of the paper is to outline demand--driven multiplier …
The Multiplier Effect of Education Expenditure
whether the multiplier of Pell grants is higher during recessions, as has previously been found for military expenditure.2 We find that the effect of Pell grants on income is larger in recessions …
Sources of Variation in Economic Impact Multipliers
undertaking economic impact analyses to recommend: Given the complexities associated with multipliers, the wisest course of action is to focus economic impact efforts on obtaining a good …
Additionality Guide - GOV.UK
4.5 Economic multiplier effects 24 5 Calculating additionality 27 5.1 Introduction 27 5.2 How to calculate additionality 27 5.3 Illustrative worked examples by intervention type 28 5.4 A worked …
Input-Output Output Multiplier Tables - SingStat
A change in final demand for an industry’s output creates an economic impact that is greater than the initial change. Let’s assume that there is a $1 million increase in final demand for …
Approaches to development - Pearson
This multiplier eff ect boosts development. TNCs may pull their investment out of an area if they ... Emerging countries have undergone rapid economic growth in recent times. For your case …
The Economics of Local Food Systems - Agricultural …
ii iii Contents Authors and Acknowledgements ii Introduction: The Economics of Local Food Systems, a Toolkit to Guide Community Discussions, Assessments, and Choices 1 Roadmap …
Economic Contributions & Multiplier Effects of the Beef …
Dec 6, 2019 · economic development and improve the competitiveness of Pennsylvania (PA) beef the industry, it is ... A comprehensive definition of the industrybeef in PA was constructed to …
FISCAL MULTIPLIERS: A REVIEW OF FISCAL STIMULUS …
FISCAL MULTIPLIERS: A REVIEW OF FISCAL STIMULUS OPTIONS AND IMPACT ON POOR COUNTRIES 4 and 0.1 to 0.7 in Bangladesh. The ample fiscal multiplier estimates for Peru …
Macroeconomics: MPC, MPS & Multiplier Effect - Leon …
the greater the multiplier effect for changes in GDP! The equation can also be rewritten as: Change in 𝐺 𝑃=Change in 𝐴 ×(1 1−𝑀𝑃𝐶) The factor 1/(1 − MPC) is called the multiplier. If a question …
Local Economic Impacts of Popular Music Concerts
total economic impact, including multiplier effects, of concert-related spending in 2012 is an estimated $16.0 million in output, 239 full- and part-time jobs, and $5.1 million in labor income. …
NBER WORKING PAPER SERIES - National Bureau of …
We find that market incompleteness is key to determining the size of the fiscal multiplier, which is uniquely determined in our model for any combination of fiscal and monetary policies of …
The Genesis of the Multiplier Theory - JSTOR
multiplier. Consequently, 'the multiplier is the marginal effect of a change of one economic variable upon another economic variable, of which the first variable is a component.'4 In fact, it …
U.S. ECONOMIC CONTRIBUTION OF THE CONSUMER …
Dec 15, 2017 · The economic multiplier, which represents the ratio of the total economic contribution of the consumer tech sector to the direct effect, ranges between 2.03 (for total …
Local Multiplier and EconomicBase Anlysis
where α is the share of overall economic activity belonging to the non-basic sector and, hence, provides a measure of the sensitivity of economic activity in that sector to changes in the …
No. 25 | February 12, 2015 Climate Change as Threat …
Economic risk: In its definition of “economic risk” the 2014 report includes: “failure of physical infra-structure on which economic activity depends.” The threat that climate change impacts, such …
Economic Multiplier Effect Definition(2) - app.ajw.com
Economic Multiplier Effect Definition(2) Claude Gnos,Louis-Philippe Rochon The Keynesian Multiplier Claude Gnos,Louis-Philippe Rochon,2008-05-25 The multiplier is a central concept in …
National Income and the Trade Balance - Scholars at Harvard
economy, where m 5 0, the multiplier reduces to the familiar 1 s,or1 (12 c). In gen-eral,however,the open-economy multiplier is less than 1 s because of a second leakage from …
Working Paper - Updated Employment Multipliers for the U.S.
The indirect employment (or, employment multipliers) associated with jobs in any given industry results from three effects: supplier effects, respending effects, and government employment …
Geographic Cross-Sectional Fiscal Spending Multipliers: What …
no-monetary-policy-response multiplier of 1.7 or above. (JEL E32, E52, E62, H54, H76, R53) A geographic cross-sectional fiscal spending multiplier measures the effect of an increase in …
Analyzing Outbound Tourism as a Form of Economic …
reluctance, a balance-of-payments deficit, a reduction in the economic multiplier effect, and inflationary pressures on the economy. The main causes of outbound tourism leakage were the …
AP 2006 Human Geography Scoring Guidelines - College Board
Principle Definition Core-Periphery • Uneven spatial distribution of economic, political, or cultural power. ... Not a long-term contributor to local economic development Low multiplier effect Low …
Economic impact of arts and culture on the national economy …
Wider multiplier impacts of the arts and culture industry 8 Other aspects of the economic contribution of the arts and culture industry 9 Economic contribution of NPOs to the UK …
Mega Events: Review of the Economic and Social Impacts of …
Multiplier Effect - the notion, based on mathematic and economic formulas that the effect of direct spending increases due to additional rounds of spending (Baade & Matheson, 2004). 5 . …
What Have We Learned about the Effectiveness of …
) can induce a substantial upward bias in the figures related to this spending multiplier. Once the persistence of spending is taken into account, the multiplier becomes less than one. Getting rid …
The Role of Medicaid in State Economies: Looking Forward to …
into full effect at the beginning of 2014. Economic impact can be defined as the net change in th e economy resulting from an event such as an increase ... Through the multiplier effect, other ...
Quantifying the Economic Impact of Community Events
multiplier Impact Total. Multipliers are generally provided through expert judgment, a third-party provider, or a model for impact assessment like IMPLAN Pro or the Michigan Tourism …
jobs and growth The economic contribution of the tourism …
This is the Type II multiplier.4 2 ‘The Economic Case for the visitor economy’ , Deloitte and Oxford Economics, 2008 and ‘The economic contribution of the visitor economy: UK and the nations’, …
2.4.4 The multiplier - exampaperspractice.co.uk
• Multiplier = 1/ MPW (or 1-MPC) • Positive multiplier: when an initial increase in an injection (or a decrease in leakage) leads to a greater final increase in GDP • The effect of the multiplier is to …
Fiscal Policy: Economic Effects - Federation of American …
Jan 21, 2021 · affect economic outcomes by either increasing or decreasing economic activity. For example, when the government runs a budget deficit, it is said to be engaging in fiscal …
AVIATION SECTOR MULTIPLIER AUGUST 2017 - Malaysian …
These variations indicate several issues related to the multiplier. Firstly, there is no single definition of a ‘multiplier effect’. For example, a claim that the “Malaysian aviation sector has a …
IMPLAN, RIMS-II, and REMI Economic Impact Models
Multiplier Effect Note: Diagram is illustrative and is intended to provide an overview of Input-Output modeling, not a full representation of model inputs and structure. ... • Time – Total …
2022 SUBJECT WORKBOOK Grade 12 - Western Cape
The multiplier is derived from the marginal propensity to consume (mpc) The size of the multiplier is determined by the portion of the increase in income spent. The greater the mpc, the greater …
Introduction - ASA
The Economic Multiplier Effect $129 Billion Economic Output 826,000 Jobs Supported $39.5 Billion Salaries & Wages. Recreational fishing is clearly a powerful economic engine, but don’t …
Money, Reserves, and the Transmission of Monetary Policy: …
money, as suggested by the multiplier, could be found. Hence, while the actual multiplier was about twice the theoretical multiplier in 2003, it was about 1/50th of the theoretical multiplier in …
Year 12 A Level Geography Paper 2 Unit 2 - Langdon Park …
A multiplier effect –(can be both positive and negative). The idea behind it is that wealth concentrates in regions and generates greater wealth etc. Cycle of decline/ negative multiplier …
ECONOMIC MULTIPLIERS AND CANADA’S MANUFACTURING …
Economic multipliers are a useful tool to observe and quantify the economic impact of different sectors of Canada’s economy. Manufacturing has a high economic multiplier and thus makes …
Applying multipliers in tourism - BEAM Exchange
multiplier quantifies that ratio. If 10 jobs created in tourism lead to 2 additional jobs being created in other sectors as a result thereof, the multiplier is 0.2. “Always verify if existing multipliers are …
Estimated Impact of the American Recovery and Reinvestment …
estimates of ARRA’s overall impact on employment and economic output in the second quarter of calendar year 2010. Those estimates—which CBO considers more comprehensive than the …
Value Magnitudes and the Kahn Employment Multiplier
the multiplier in a Sraffian framework, Manchester School of Economic and Social Studies, LIII (2), June, pp. 121-37. Olgin, D.S. (1992) On an accidental proof of the ‘Fundamental Marxian …
A Practitioner’s Guide to Conducting an Economic Impact …
4. Type I multiplier—measures the direct and indirect effects of a change in economic activity. It captures the inter-industry effects only, i.e., industries buying from local industries. 5. Type II …
THE INDIRECT IMPACT OF TOURISM: AN ECONOMIC …
Tourism Satellite Accounts and shows how multiplier-based analysis can give an overall evaluation of the economic impact of tourism, distinguishing between direct, indirect and …
Economic leakage in tourism sector - Lu
tourism and economic development followed by the literature review of economic leakage. The tourism value chain is used to help examine leakage prone points in the tourism sector. Åre …
Local Multipliers - JSTOR
multiplier effect depends on three factors. First, it depends on consumer preferences for nontrad ables and the technology in the nontradable sec tor. More labor intensive technologies result in …
GRADE 12 ECONOMICS TEACHER NOTES - Mail & Guardian
multiplier. (3) (Define means writing out the whole definition.) 3.1.2 With reference to the graph, name the TWO sectors involved in deriving the macro-economic multiplier. (4) (Please look at …
