Externality effect of the USA total, federal and state government expenditures on private investment, 1960-91

Erkin Bairam

Applied Economics Letters, 1995, vol. 2, issue 1, 23-25

Abstract: The main objective of this short paper is to measure the impact of increases in total, federal and state government expenditures on private investment in the USA. For this purpose a framework based on a variable elasticity approach is used and tested. The results obtained conclusively support the 'accelerator principle' and 'crowding out' hypothesis.

Date: 1995
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DOI: 10.1080/135048595357753

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