Re:Every $1 spent on food stamps resulted in $1.73 in GDP gr...
by brg on Saturday February 25, 2012 @01:25AM
(#3632332)
Statistical tools can allow for control. The best paper I've seen on this is the Romer and Romer study "The Macro-Economics of Tax Changes."
Every dollar in food stamps comes from a dollar of taxation. Their study shows that the multiplier of the original dollar is -2.5. If we have 1.8 multiplier on the food stamp, then additively we have -0.7.
Alternatively, every dollar which is 'spent' by the government in the form of tax cuts has a multiplier of nearly 3.
Every dollar in food stamps comes from a dollar of taxation. Their study shows that the multiplier of the original dollar is -2.5. If we have 1.8 multiplier on the food stamp, then additively we have -0.7.
Alternatively, every dollar which is 'spent' by the government in the form of tax cuts has a multiplier of nearly 3.
http://elsa.berkeley.edu/~cromer/RomerDraft307.pdf*