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Budget Deficits, Domestic Investment, and Trade Deficits

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Author Info
Arora, Harjit K
Dua, Pami

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Abstract

This paper summarizes recent empirical studies on the effects of budget deficits on interest rates, investment, and trade deficits in the United States. It also reports new evidence on the effects of budget deficits on investment and on trade deficits for the 1980s. The results support the view that budget deficits crowd out domestic investment and increase trade deficits. Copyright 1993 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Contemporary Economic Policy.

Volume (Year): 11 (1993)
Issue (Month): 1 (January)
Pages: 29-44
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Handle: RePEc:oup:coecpo:v:11:y:1993:i:1:p:29-44

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  1. Jamee K. Moudud, . "Government Spending in a Growing Economy, Fiscal Policy and Growth Cycles," Economics Public Policy Brief Archive 52, Levy Economics Institute, The. [Downloadable!]
  2. Selahattin Dibooglu, 1995. "Accounting for U.S. Current Account Deficits: An Empirical Investigation," International Finance 9502003, EconWPA. [Downloadable!]
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This page was last updated on 2008-10-3.


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