Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246962 
Year of Publication: 
2012
Series/Report no.: 
EHES Working Papers in Economic History No. 31
Publisher: 
European Historical Economics Society (EHES), s.l.
Abstract: 
We report estimates of the fiscal multiplier for interwar Britain based on quarterly data, time-series econometrics, and 'defense news'. We find that the government expenditure multiplier was in the range 0.5 to 0.8, much lower than previous estimates. The scope for a Keynesian solution to recession was much lower than is generally supposed. We do find that rearmament gave a substantial boost to real GDP after 1935 but this was because the private sector responded to news of massive future defense spending and does not imply that the multiplier effect of temporary public works programs would have been large.
Subjects: 
defense news
multiplier
public works
rearmament
JEL: 
E62
N14
Document Type: 
Working Paper

Files in This Item:
File
Size
477.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.