On Jun 22, 2007, at 12:47 PM, Jonathan Nitzan wrote:
> Assuming we accept the Keynesian rationale, why should the multiplier
> for industrial goods be higher than for services?
According to the U.S. Bureau of Economic Analysis, the multipliers for manufacturing are considerably higher than services. And within manufacturing, the multipliers are higher for some of the old- fashioned stuff than the new-fangled. E.g.:
manufacturing 2.43
motor vehicles 2.89
textiles 2.69
computers 2.62
semiconductors 1.97
information 1.75
professional and business services 1.52
R&D 1.62
computer systems design 1.57
Doug