The "Crowding Out" Effect of Federal Government Outlay Decisions: An Empirical Note

Richard Cebula (), Christopher Carlos and James Koch

MPRA Paper from University Library of Munich, Germany

Abstract: This note has addressed the empirical issue of crowding out by examining the proportion of GDP devoted to private investment in new physical capital in part as a function of the proportion of GDP devoted to federal government outlays. Three alternative models were estimated, all of which revealed evidence of (a) a definite pattern in which private investment is crowded out by government spending and (b) only partial, i.e., incomplete, crowding out.

Keywords: budget deficit; crowding out; partial crowding out (search for similar items in EconPapers)
JEL-codes: H31 H32 H61 H62 (search for similar items in EconPapers)
Date: 1980-02-18
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Citations: View citations in EconPapers (1)

Published in Public Choice 2.36(1981): pp. 329-336

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Related works:
Journal Article: The ‘crowding out’ effect of federal government outlay decisions: An empirical note (1981)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:51554

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