Pascal Michaillat and Emmanuel Saez: How to design a stimulus package | VOX, CEPR Policy Portal: "the size of the stimulus does not follow the bang-for-the-buck logic.... Stimulus spending should be similarly small when multipliers are small and large. The stimulus should only be large for medium multipliers. Relatedly, the threshold value of one for the multiplier plays no role at all.... A well-designed stimulus package should also depend on the usefulness of public expenditure.... When the elasticity of substitution is higher, extra public goods are more valuable, so stimulus spending is more desirable.... We find that the output multiplier is not a robust statistic to use in stimulus discussion. Instead, we should use the ‘unemployment multiplier’...


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