The Keynesian Multiplier Effect Reconsidered

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2011
Volume: 43
Issue: 4
Pages: 787-794

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In the standard Keynesian framework, government spending on useless public works has a larger multiplier effect than spending on government transfer payments does. In other words, spending on useless public works increases national income by more than an equivalent increase in government transfer payments would. Nevertheless, their effects on national benefit are identical. For both, the national benefit equals the direct benefit created by the spending. If there are two income classes, some transfers reduce both the national income and the national benefit. Some government purchases completely crowd out private consumption and reduce the national benefit.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:43:y:2011:i:4:p:787-794
Journal Field
Macro
Author Count
1
Added to Database
2026-01-26