Some Preliminary Evidence on the Short-Run Aggregate Demand Effects of Fiscal Policy

Dante B. Canlas
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Dante B. Canlas: University of the Philippines, School of Economics

Philippine Review of Economics, 1986, vol. 23, issue 1&2, 143-150

Abstract: The crowding out of private consumption by fiscal policy is examined using a short-run consumption function. There is evidence of a one-for-one crowding out of consumption by government purchases of goods and services. The effects of debt financing on consumption are mixed. Internal debt exerts a negative effect while external debt, a positive one.

Date: 1986
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