Federal Government Budget Deficits and the Crowding Out of Private Investment in the United states: Evidence for the 1990s
AbstractThis study investigates whether federal government budget deficits in the U.S. over the 1990-99 time period acted to crowd out private investment in new plant and equipment. Using quarterly data, empirical estimations clearly indicate that private investment was in fact negatively impacted by the budget deficit.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 54571.
Date of creation: 22 Feb 2003
Date of revision:
Publication status: Published in The Indian Journal of Economics 4.84(2004): pp. 587-595
budget deficits; investment in new plant and equipment; crowding out;
Find related papers by JEL classification:
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other
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- Hoelscher, Gregory, 1986. "New Evidence on Deficits and Interest Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(1), pages 1-17, February.
- Feldstein, Martin S & Eckstein, Otto, 1970. "The Fundamental Determinants of the Interest Rate," The Review of Economics and Statistics, MIT Press, vol. 52(4), pages 363-75, November.
- James R. Barth & George Iden & Frank S. Russek, 1984. "Do Federal Deficits Really Matter?," Contemporary Economic Policy, Western Economic Association International, vol. 3(1), pages 79-95, 09.
- Vito Tanzi, 1985. "Fiscal Deficits and Interest Rates in the United States: An Empirical Analysis, 1960-84 (DÃ©ficits budgÃ©taires et taux d'intÃ©rÃªt aux Etats-Unis: analyse empirique, 1960-84) (El dÃ©ficit f," IMF Staff Papers, Palgrave Macmillan, vol. 32(4), pages 551-576, December.
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