Fiscal policy and private investment expenditure: a study of Australia and the United States

Monadjemi, Mehdi

doi:10.1080/00036849300000018

Cited by 23 publications

(7 citation statements)

References 13 publications

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“…Focusing on different countries and sample periods, some authors offer empirical support for the crowding-out hypothesis (e.g. Monadjemi, 1993;Ghali, 1998;Voss, 2002), whereas others (e.g. Erenburg, 1993;Karras, 1994;Erenburg & Wohart, 1995;Flores de Frutos et al, 1998;Pereira, 2000Pereira, , 2001a find that crowding-in prevails.…”

Section: Testing the Crowding-in Versus The Crowding-out Hypothesismentioning

confidence: 93%

Public Investment and Economic Performance in Highly Indebted Poor Countries: An Empirical Assessment

Belloc

Vertova

2006

International Review of Applied Economics

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Understanding how public investment affects economic performance in highly indebted low‐income countries is crucial in order to implement effective fiscal policies for adjustment with growth. In this paper we provide an empirical analysis to investigate the relationship between public investment, private investment and output. A dynamic econometric procedure is implemented on a selected group of Highly Indebted Poor Countries (HIPCs). Our results provide empirical support for the crowding‐in hypothesis and a positive relation between public investment and output.Crowding‐in, crowding‐out, economic growth, fiscal adjustment, highly indebted countries, public investment, H54, H63, O11, O23,

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Section: Testing the Crowding-in Versus The Crowding-out Hypothesismentioning

confidence: 93%

Public Investment and Economic Performance in Highly Indebted Poor Countries: An Empirical Assessment

Belloc

Vertova

2006

International Review of Applied Economics

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“…For example, empirical studies by Aschauer (1989), Erenburg (1993), Seitz (1994), Ai and Cassou (1995) and Pereira (2001) suggest that public investment 'crowds in' private investment, while those by Monadjemi (1993) and Zou (2003a, b) suggest that public investment 'crowds out' private investment. As Aschauer (1989) and Munnell (1992) said, the relationship between public and private investment is characterized by two opposing forces.…”

Section: Introductionmentioning

confidence: 96%

Empirical studies on the relationship between public and private investment and GDP growth

Yang¹

2006

Applied Economics

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This study performs empirical studies on the interaction between public and private investment and GDP growth for Japan and the USA. Since the data for each country used show features that are quite different from each other, empirical methods of GMM (Generalized Method of Moments) and OLS (Ordinary Least squares) are accordingly applied to Japan and the USA, respectively. The empirical results suggest that both public and private investment make great contributions to Japanese economic growth, while the US private investment seems to play a much more significant role than public investment.

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“…For example, studies by Aschauer (1985) and Monadjemi (1993) provide evidence in support of the substitutability hypothesis whereas those by Erenburg(1993), Karras(1994), Erenburg and Wohar(1995) favour the complementarity hypothesis. Some recent multi-nation studies (e.g., Monadjemi 1996) show no strong evidence for either the crowding-out or crowding-in effects.…”

Section: Introductionmentioning

confidence: 88%

Effects of Government Expenditure on Private Investment - China Empirical Evidence

Ding-yu

Zhang

2009

2009 First International Workshop on Education Technology and Computer Science

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The purpose of the study is to investigate the relation between government expenditure and private investment in China during 1978China during to 2004. To this end, effects of three categories of government on private investment are examined within the cointegration and error-correction framework. The empirical results show that government investment expenditure crowds out private investment in the short-term whereas crowds in private investment in the long-run. The government consumption expenditure and government transfer expenditure crowd out private investment, but the effect is not significance.

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Fiscal policy and private investment expenditure: a study of Australia and the United States

Cited by 23 publications

References 13 publications

Public Investment and Economic Performance in Highly Indebted Poor Countries: An Empirical Assessment

Public Investment and Economic Performance in Highly Indebted Poor Countries: An Empirical Assessment

Empirical studies on the relationship between public and private investment and GDP growth

Effects of Government Expenditure on Private Investment - China Empirical Evidence

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