[lbo-talk] Some lbo questions

[Max B. Sawicky]

Depends on how the multiplier is calculated, but in a textbook model
estimated
with a regression the multiplier is an average of an instantaneous
effect.  The
parameters are coefficients, which themselves are derivatives (the
change in Y
given an infinitely small change in X).  It
could be useful information, but it does not -- by construction it
cannot --
reflect the cumulative jobs created or saved or a non-instantaneous
period of time.

It would be worth trying to see what it costs to get work going
through some kind
of WPA effort.  In the 30s I've read, if memory serves, the
administrative effort
was something approaching miraculous.

-----Original Message-----
From: lbo-talk-bounces at lbo-talk.org
[mailto:lbo-talk-bounces at lbo-talk.org] On Behalf Of Doug Henwood
Sent: Sunday, December 06, 2009 3:52 PM
To: lbo-talk at lbo-talk.org
Subject: Re: [lbo-talk] Some lbo questions

On Dec 6, 2009, at 12:32 AM, Max B. Sawicky wrote:


> Comparing money "spent" to jobs is not an apples to apples
comparison.
>
> Money "spent" in the case of Federal spending or grants is a
> reimbursement for spending that might have yet to take full effect.

Yeah, mabye. But this is partly captured by multipliers. Even if you  
halve the $250,000/job figure, you come up with a number several times

higher than what it would cost to hire a well-paid worker for a year.

Doug
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