Monday, October 21, 2013

Thank you Gerald Carlino and Robert P. Inman

Finally we have some real results from government as a value added channel. I have been pleading for economists to start looking, and finally we have:

Macro Fiscal Policy in Economic Unions: States as Agents

I have just read the abstract, so I know the result sort of. When you force programs through the state capitals you are going to get the large/small state mismatch. When the federal government bypasses the state political machines, multipliers are higher.

That is not exactly what they interpret, but I am going to take license here because I know what's going on, I get value added networks. The important point is they are starting to look.

No comments: