On 11/16/2013 8:36 AM, Alan G Isaac quoted:
>       "The range of the spending multiplier estimated using
>       these various approaches is from .4 to 1.5, with some
>       estimates even lower than .4 and some estimates larger
>       than 1.5.  However, most fall in the .4 to 1.5 range."


If I may offer just one more quote from some people who care about the evidence.
Jordà, Òscar  and Alan M. Taylor, 2013,
"The Time for Austerity: Estimating the Average Treatment Effect of Fiscal Policy"
http://www.nber.org/papers/w19414

         "[W]e have a measure of the multiplier that
         explicitly accounts for failures of identification
         due to observable controls.  Our estimates ...
         suggest even larger impacts than the IMF study when
         the state of the economy worsens. ...  It appears
         that Keynes was right after all."

As Steve now allows, it is *not* obvious that the fiscal responses
to the Great Recession invalidate Keynesian claims about the
role of aggregate demand.  Not in the least.

Cheers,
Alan Isaac