Federal Government Budget Deficits and the Crowding Out of Private Investment in the United states: Evidence for the 1990s

Cebula, Richard and Koch, James and Perry, William and Toma, Michael (2003): Federal Government Budget Deficits and the Crowding Out of Private Investment in the United states: Evidence for the 1990s. Published in: The Indian Journal of Economics , Vol. 84, No. 4 (30 April 2004): pp. 587-595.

Abstract

This 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.

• Item Type: MPRA Paper
• Language: English
• Keywords: budget deficits; investment in new plant and equipment; crowding out
• Subjects: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household; H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus; H - Public Economics > H6 - National Budget, Deficit, and Debt > H69 - Other

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