Scott Sumner's latest at EconLog got me thinking. I understand that the multiplier is a useful theoretical item in the Keynesian toolkit, but as far as I am aware, the empirical evidence for the multiplier is basically nil. I've read many articles making the case for the non-existence of the Keynesian multiplier, and I have read a few conservative articles claiming that the multiplier is between 0 and 1.
But I have never read any really good paper claiming that the Keynesian multiplier is greater than 1. Can anyone point me to the most compelling evidence?
But I have never read any really good paper claiming that the Keynesian multiplier is greater than 1. Can anyone point me to the most compelling evidence?
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