Abstract

This chapter considers other fiscal stimulus programs that might be included with tax rebates in a fiscal stimulus package. The chapter begins with several fiscal stimulus programs that are recommended for inclusion. Then the chapter examines several other fiscal stimulus programs and explains why they are not recommended. Next it reviews and comments on components of the fiscal stimulus enacted in early 2009 and implemented in 2009 and 2010—the American Recovery and Reinvestment Act (ARRA). The chapter explains a common mistake made by many economists that leads them to multiplier estimates of fiscal stimulus programs that are too low. Finally, the chapter reports on and evaluates several empirical studies of fiscal stimulus programs utilized in the Great Recession.

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