A Note on "Crowding Out" in the United States

Cebula, Richard and Cebula, Barbara (1979): A Note on "Crowding Out" in the United States. Published in: Economic Notes , Vol. 9, No. 1 (31 March 1980): pp. 122-125.

Abstract

This study examines the existence of crowding out in the United States by determining to what degree the proportion of actual GNP that was devoted to investment was affected by the proportion of GNP devoted to federal government spending. The empirical results in the regression estimation tentatively indicate that private investment in new capital is in fact crowded out by federal government outlays. Nevertheless, the evidence in this regression indicates also that although crowding out does occur, it is incomplete.

• Item Type: MPRA Paper
• English Title: A Note on "Crowing Out" in the United States
• Language: English
• Keywords: crowding out of investment; government purchases as percent of GDP; partial crowding out
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E26 - Informal Economy ; Underground Economy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects; H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus

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