Fiscal Policy and Employment in Interwar Britain: Some Evidence From a New Model

Dimsdale, Nicholas; Horsewood, Nicholas

doi:10.1093/oxfordjournals.oep.a042177

Cited by 37 publications

(17 citation statements)

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“…We carry out the simulations using an updated version of the macroeconomic model, which appeared in Dimsdale and Horsewood (1995). Eichengreen and Jeanne (2000) comment that the model is 'state of the art' and it has not yet been superseded.…”

Section: Introductionmentioning

confidence: 99%

British Financial Crises since 1825

2014

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Section: Introductionmentioning

confidence: 99%

British Financial Crises since 1825

2014

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“…More recently, Nicholas Dimsdale and Nicholas Horsewood (1995) incorporated aggregate supply with a high degree of nominal inertia as well as aggregate demand into a macro-econometric model for the interwar period. They, conclude that the short run multiplier was about 1.5 and the long run as much as 2.5.…”

Section: Introductionmentioning

confidence: 99%

Rearmament to the Rescue? New Estimates of the Impact of “Keynesian” Policies in 1930s' Britain

Crafts¹,

Mills²

2013

J. Econ. Hist.

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We report estimates of the fiscal multiplier for interwar Britain based on quarterly data, time-series econometrics, and 'defense news'. We find that the government expenditure multiplier was in the range 0.3 to 0.8, much lower than previous estimates. The scope for a Keynesian solution to recession was less than is generally supposed. We find that rearmament gave a smaller boost to real GDP than previously claimed. Rearmament may, however, have had a larger impact than a temporary public works program of similar magnitude if private investment anticipated the need to add capacity to cope with future defense spending.

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“…15 15 For example, Broadberry, British economy ; Matthews, ‘Could Lloyd George have done it?’; Dimsdale and Horsewood, ‘Fiscal policy’. …”

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“…24 24 Howson, Domestic monetary management ; Dimsdale, ‘British monetary policy’; Broadberry, British economy , ch. 14; Capie and Wood, ‘Money in the economy’; Dimsdale and Horsewood, ‘Fiscal policy’; Wormell, Management of the national debt ; Chadha and Dimsdale, ‘Long view of real rates’; Foreman‐Peck, ‘Debt constraint’. …”

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confidence: 99%

“…134 134 Dimsdale and Horsewood, ‘Fiscal policy’, p. 382, calculated that a dummy variable for the tariff reduced the average propensity to import from 0.25 to 0.22. More recently, using newer econometric techniques and a new quarterly dataset, N. Horsewood, S. Sen, and A. Voicu, ‘Beggar thy neighbour: British imports during the inter‐war years and the effect of the 1932 tariff’, Department of Economics, University of Birmingham working paper (2009), pp.…”

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Macroeconomic policy in Britain between the wars1

Middleton¹

2011

The Economic History Review

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This Virtual Issue of the Review is offered as a modest contribution towards reigniting interest in macroeconomic policy in Britain between the wars. In reprinting 19 articles which were published in the Review between 1974 and 1991, the introduction to this Virtual Issue supplements those articles and provides a further opportunity to re‐examine key macroeconomic policy episodes and specific policy impact. The articles are divided into three sections: monetary and exchange rate policy; fiscal policy and the Keynesian solution; and tariff policy. The purpose of this introductory essay is to contextualize these articles briefly, comment on subsequent literature, and, where appropriate, point to future, potentially fertile areas for research which will take forward the research findings here reproduced.

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Fiscal Policy and Employment in Interwar Britain: Some Evidence From a New Model

Cited by 37 publications

References 45 publications

British Financial Crises since 1825

British Financial Crises since 1825

Rearmament to the Rescue? New Estimates of the Impact of “Keynesian” Policies in 1930s' Britain

Macroeconomic policy in Britain between the wars1

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