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Which Models Best Explain How Changes in Loanable Funds Offset Crowd Out?

In: Why Fiscal Stimulus Programs Fail, Volume 1

Author

Listed:
  • John J. Heim

    (State University of New York)

Abstract

This chapter tests different ways of modeling the combined effects of deficits and loanable funds offsets, either as one “modified” deficit variable, or as separate deficit and loanable funds variables. As was noted earlier in discussing methodology, for consumption models, modifying the deficit variable and including a stand-alone modifier variable is the best, but that modifying the loanable funds variable instead while including a stand-alone variable produced the same results and therefore is an equivalent alternative. For investment, just the deficit modifier may be enough.

Suggested Citation

  • John J. Heim, 2021. "Which Models Best Explain How Changes in Loanable Funds Offset Crowd Out?," Springer Books, in: Why Fiscal Stimulus Programs Fail, Volume 1, chapter 0, pages 275-290, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-65675-1_16
    DOI: 10.1007/978-3-030-65675-1_16
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