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Respond to the question: Magic Multipliers?

10/05/2002 11:54 AM by Danny L. Newton; Magic Multipliers
One of the most overused arguements for the use of public money for economic development is that alleged fact that the investment/subsidy multiplies. Over the years, proponents of the multiplication theory have been forced to scale back their claims. The highest I ever saw was a multiplier of 7 and it was associated with speculation is casino construction. Even the federal government warns against planning to use multipliers larger than 2.5 for monetary benefit and 1.5 for job creation. A system of game players, regardless of the kind of games seems unable to pass through to succeding players a multiplier effect. Has anyone heard of research in this phenomenon? [Manage messages]