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| Raymond Lee |
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| ''Multipliers: A brief note on spending efficiency'' |
| ( 2012, Vol. 32 No.3 ) |
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| This note discusses expenditure multipliers and their use in analyzing spending efficiency. Conceptual models are developed to examine the marginal propensities; namely consumption and investment and their role in influencing the expenditure multiplier, aggregate spending cycles, consumption and investment efficiencies, and aggregate income generation. Additional models are developed to examine the marginal propensities and their impact on the expenditure multiplier when the assumptions governing marginal propensity behavior are relaxed. It is suggested in this note that relaxing the assumptions governing the marginal propensities to consume and invest will alter the growth implications upon which multiplier analysis is based. |
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| Keywords: JEL: 5; E |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
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| Manuscript Received : Aug 03 2011 | | Manuscript Accepted : Sep 27 2012 |
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