Ramanan — The Kaldor-Verdoorn Effect

Anyway, to conclude, cheering for productivity is not going to help the world economy. The solution is to increase production: productivity will rise when production rises. The standard story as told in Mankiw’s textbook is erroneous.

Mankiw has the causality reversed.

The Case of Concerted Action
The Kaldor-Verdoorn Effect
Ramanan

Paper — What Do Budget Deficits Do? by Laurence Ball N. Gregory Mankiw

The Immediate Effects of Budget Deficits

Budget deficits have many effects. But they all follow from a  single initial effect: deficits reduce national saving. National saving  is the sum of private saving (the after-tax income that households save rather than consume) and public saving (the tax revenue that the government saves rather than spends). When the government  runs a budget deficit, public saving is negative, which reduces national saving below private saving.

Harvard
What Do Budget Deficits Do?
Laurence Ball and N. Gregory Mankiw
(h/t Subborn Mule)

Anyone see a problem here? :o

Some discussion at Stubborn Mule here.