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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 f
by brg 15y ago
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.
http://elsa.berkeley.edu/~cromer/RomerDraft307.pdf* http://elsa.berkeley.edu/~cromer/RomerDraft307.pdf*