IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/56629.html
   My bibliography  Save this paper

Crowding Out: An Empirical Note: Reply

Author

Listed:
  • Cebula, Richard

Abstract

This study examines the existence of crowding-out in the United States by determining to what degree the proportion of GNP devoted to private investment in new capital was affected by the proportion of GNP devoted to aggregate federal government spending. The evidence here strongly supports the crowding-out thesis but indicates that there is only incomplete crowding out. This evidence of incomplete crowding out is at odds with the extreme monetarist position; the existence of a definite but only partial crowding-out effect, however is also at odds with the extreme Keynesian position.

Suggested Citation

  • Cebula, Richard, 1979. "Crowding Out: An Empirical Note: Reply," MPRA Paper 56629, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56629
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/56629/1/MPRA_paper_56629.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keith M. Carlson & Roger W. Spencer, 1975. "Crowding out and its critics," Review, Federal Reserve Bank of St. Louis, vol. 57(Dec), pages 2-17.
    2. Cebula, Richard, 1977. "Crowding Out: An Empirical Note," MPRA Paper 54515, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard J. Cebula, 2008. "Small Firm Size and Health Insurance: A Private Enterprise Perspective," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Fall 2008), pages 51-77.
    2. X. Henry Wang & Bill Yang & Alex Young, 2023. "On the monetary policy in an economy with banks endogenously creating money," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(2), pages 121-127, March.
    3. repec:hal:spmain:info:hdl:2441/5221 is not listed on IDEAS
    4. Cebula, Richard & Clark, Jeff, 2014. "Impact of Economic Freedom, Regulatory Quality, and Taxation on the Per Capita Real Income: An Analysis for OECD Nations and Non-G8 OECD Nations," MPRA Paper 56605, University Library of Munich, Germany.
    5. Cebula, Richard & McGrath, Richard, 2006. "Identifying Determinants of the Cost of Long Term Borrowing for U.S. Firms: Insights for Management," MPRA Paper 49647, University Library of Munich, Germany.
    6. Spector, Lee C, 1999. "Macroeconomic Models and the Determination of Crowding Out," Public Finance = Finances publiques, , vol. 54(1-2), pages 84-98.
    7. Lee, Jim, 2015. "The regional economic impact of oil and gas extraction in Texas," Energy Policy, Elsevier, vol. 87(C), pages 60-71.
    8. Yasuo Kofuji, 1984. "On the Efficacy of Fiscal Policy and Price Level Changes," Public Finance Review, , vol. 12(2), pages 167-181, April.
    9. Fitzgerald Frank, 2023. "A road not taken? Economic ideology and the articulation of policy alternatives in Irish state economic policymaking, 1948–58," Administration, Sciendo, vol. 71(2), pages 27-51, May.
    10. Richard J. Cebula, 2013. "Budget Deficits, Economic Freedom, and Economic Growth in OECD Nations: P2SLS Fixed-Effects Estimates, 2003–2008," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 28(Spring 20), pages 75-96.
    11. Richard J Cebula, 2004. "The Impact of the Federal Budget Deficit on the Nominal Interest Rate Yield on U.S. Treasury Notes, 1979-2001," The IUP Journal of Applied Economics, IUP Publications, vol. 0(2), pages 7-18, March.
    12. Richard Cebula & Christopher Carlos & James Koch, 1981. "The ‘crowding out’ effect of federal government outlay decisions: An empirical note," Public Choice, Springer, vol. 36(2), pages 329-336, January.
    13. Herbert G. Grubel, 1982. "Reflections on a Canadian Bill of Economic Rights," Canadian Public Policy, University of Toronto Press, vol. 8(1), pages 57-68, Winter.
    14. Bruno Ducoudre, 2008. "Structure par terme des taux d’intérêt et anticipations de la politique économique," Sciences Po publications info:hdl:2441/5221, Sciences Po.
    15. Farmer, Roger E.A., 2012. "The stock market crash of 2008 caused the Great Recession: Theory and evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 693-707.
    16. Suzan Hol, 2006. "Determinants of long-term interest rates in the Scandinavian countries," Discussion Papers 469, Statistics Norway, Research Department.
    17. Cebula, Richard & McGrath, Richard & Toma, Michael, 2005. "Impact of the Primary Budget Deficit on the Nominal Long Term Interest Rate Yield on Tax Free Municipal Bonds," MPRA Paper 61411, University Library of Munich, Germany.
    18. Cebula, Richard J. & Clark, J.R. & Mixon, Franklin G., Jr., 2013. "The Impact of Economic Freedom on Per Capita Real GDP: A Study of OECD Nations," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(1).
    19. Cebula, Richard, 2014. "An Empirical Investigation into the Impact of U.S. Federal Government Budget Deficits on the Real Interest Rate Yield on Intermediate-term Treasury Debt Issues, 1972-2012," MPRA Paper 55269, University Library of Munich, Germany.
    20. Richard Cebula & Franklin Mixon, 2012. "The Impact of Fiscal and Other Economic Freedoms on Economic Growth: An Empirical Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(2), pages 139-149, May.
    21. Richard Cebula & Pablo Cuellar, 2010. "Recent evidence on the impact of government budget deficits on the ex ante real interest rate yield on Moody’s Baa-rated corporate bonds," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 34(3), pages 301-307, July.

    More about this item

    Keywords

    budget deficit; crowding out; investment;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:56629. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.