...Harold M. Somers Copyright © 1977 by Duke University Press 1977 On the origins of the balanced-budget-multiplier theorem A note by Harold M. Somers The recent articles by Samuelson and Walter Salant generously ac- cord an early paper of mine a place in the history...

...Orsola Costantini This article analyzes the early but crucial stages of the development of the cyclically adjusted budget estimate. The idea of balancing the budget over the cycle was first conceived in the 1930s by the economists of the Stockholm school. During and after World War II...

...William A. Salant Copyright © 1975 by Duke University Press 1975 111. The balanced budget multiplier as the sum of an infinite series Williani A. Salant, 11 September 1964 The balanced budget theorem owes its seductive appeal partIy to a paradoxical quality...

...Paul A. Samuelson Copyright © 1975 by Duke University Press 1975 References Baumol , W. J. , and M. H. Peston. “More on the Multiplier Effects of a Balanced Budget”. American Economic Review 45 (March 1955 ): 140 -48; “Reply,” ibid., 46 (March 1956): 160-62. Brown , E. C...

... Functions with Limited Budgets. Econometrica 3 : 66 -78. Hotelling , Harold 1954 . Hotelling to Lloyd Reynolds, 24 September. Box 5, Miscellaneous Correspondence “R,” Harold Hotelling Papers, Columbia University, New York. Hotelling , Harold N.d. On the Nature of Demand and Supply...

...Robert W. Dimand Best known as a Keynesian macroeconomist and monetary theorist, James Tobin was also actively engaged in empirical economics from his doctoral dissertation onward. His innovative combination of time-series data with household budget surveys in his 1947 dissertation and 1950 food...

...: University of Michigan Press. Buchanan, James, and Richard Wagner. 1977 . Democracy in Deficit . NewYork: Academic Press. Clarke, Peter F. 1997 . Keynes, Buchanan, and the Balanced Budget Doctrine. In Debt and Deficits , edited by John Maloney. Cheltenham: Edward Elgar. Hansen, Alvin. 1953...

... endorsement of deficit budgets during the early 1930s, Henry Simons privately regarded as “piffle” the rule of countercyclical balancing of the budget. The principal concern of this paper is to trace briefly the development of the Chicago economists’ case for reliance on fiscal policy and to delineate...

... , no. 5 ( 1941 ): 293 -99. Gilbert , M., G. , E. F. Jaszi, Denison, and C. F. Schwartz. “Objectives of National Income Measurement: A Reply to Professor Kuznets”. Review of Economics and Statistics , Aug. 1948 , p. 179 -95. Haavelmo , Trygve. “Multiplier Effects of a Balanced Budget...

... of the fact that the consumer is at the subsistence level. Figure 1 shows vertically the quantity of a normal good Yand horizon- tally the quantity of the Giffen good X. The budget line AD represents the quantities of X and Y which the consumer can buy, given the prices Correspondence may...

... no difficulties with Haavelmo’s balanced-budget-multiplier theorem when it appeared in Econornetrica at the end of that year. We had already at that time been taught by Gelting how a simultaneous and equal increase in pur- chases and goods and services on the one hand and revenues...

... fiscal policy in a time of depression]. Berlingske Tidende 24 June. ____. 1935 . Review of Unbalanced Budgets , by Hugh Dalton. Economica, n.s., no. 2: 468 -71. ____. 1937 . Einige Probleme der Finanzwirtschaft. Weltwirtschaftliches Archiv 45 : 467 -92. Stone, Richard, and W. M. Stone...

... a fiscal framework within which economic agents would make marginal decisions for the indefinite future. That Gladstone’s policy formation occurred in what we would refer to as the pre-constitutional period is evidenced by the forward-looking nature of his budgets. In 1853 he drafted an income...

... of Economic Affairs. Clarke, Peter F. 1997 . Keynes, Buchanan, and the Balanced Budget Doctrine. In Debt and Deficits , edited by John Maloney. Cheltenham: Edward Elgar. Colander, David. 1984 . Was Keynes a Keynesian or a Lernerian? Journal of Economic Literature 22.4 : 1572 -75. Keynes, John...

... advice. Treasury resistance to new ideas about the role of both the budget and public expenditure did not prevent the fine-tuning of the economy, using Keynesian analy- sis and techniques. The Economic Section helped ministers to develop a set of policies that curbed inflationary tendencies without...

... American Experience”. History of Political Economy 9 ( 1977 ): 48 -88. Bailey , Stephen K. Congress Makes a Law: The Story Behind the Employment Act of 1946 . New York, 1950 . Berman , Larry. The Office of Management and Budget and the Presidency, 1921–1979 . Princeton, 1979...

... of the business cycle and must indeed be used 3. Tobin, p. 5. 4. The growth of potential output and its implications for public policy were also stressed by the private Committee for Economic Development (CED) in Taxes and the Budget: A Program for Prosperity in a Free Economy (1947). The im...

... Copyright © 1977 by Duke University Press 1977 Somers & Salant - Note and reply 285 RESPONSE BY WALTER S. SALANT I welcome Harold Somers’ effort to complete the record on the origin of the Balanced-Budget-Multiplier Theorem (BBMT) as it was set...

... of public interventions are ignored. Conse- quently, no units or posts for economic analysis (planning, cost- benefits, output budgeting, econometric model building, etc.) have been built into the ministerial structure. Some special-purpose agencies for economic analysis have in fact been...

... -56. PRO 1956e . T230/346 Economic Section. Long Term Investment Policy 1949 -56. PRO 1958a . CAB 134/1679 Economic Policy Committee. UK Export Trends. 4 April. PRO 1959a . CAB 134/1681 Economic Policy Committee. Minutes. 6 March. PRO 1960a . T171/506 Budget Committee. Minutes. 1 Jan...