Public Works as a Countercyclical Device

A Review of the Issues

by Roger J. Vaughan

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Reviews issues relevant to the formulation of a countercyclical public works program. The issues discussed include: the identification of the cyclically unemployed; the measurement of employment cycles; differences among regions and among sectors with respect to cyclical behavior; labor and materials demands of public works projects; methods of financing; and a comparison of public works with other countercyclical instruments.

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