More on Christy Romer's Multipliers
I referenced Christy Romer's "research" multipliers versus her "now I'm in government" multipliers in this post - via Greg Mankiew's blog. Now Mankiew has a post up with this Q and A from a mysteriously hard to find set of talking points:
Question: But doesn’t Dr. Romer’s research show that the economic impact of tax cuts is higher than even the Administration is assuming?Mankiew calls Romer on this slight of hand.
Answer: Dr. Romer’s research suggests that all types of fiscal stimulus, both spending and tax cuts, might well have a larger impact than is typically assumed and is assumed in the CEA's analysis. ...
It is also consistent with the hypothesis that tax changes are more potent than spending changes.
But read the whole thing.
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