Search results for " crowding-in"

showing 2 items of 2 documents

Fiscal policy discretion, private spending and crises episodes

2011

In this paper, we assess the impact of fiscal policy discretion on economic activity in the short and medium-term. Using a panel of 132 countries from 1960 to 2008, we find that fiscal policy discretion provides a net stimulus to the economy in the short-run and crowding-in effects are amplified once crisis episodes are controlled for– in particular, banking crises - giving a great scope for fiscal policy stimulus packages. However, crowding-out effects take over in the long-run – especially, in the case of debt crises -, in line with the concerns about long-term debt sustainability.

Settore SECS-P/02 Politica EconomicaFiscal policy discretion GDP growth private consumption private investment crowding-in crowding-out.
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The Impact of Government Spending on the Private Sector: Crowding-out versus Crowding-in Effects

2011

The aim of this paper is to analyze the impact of government spending on the private sector, assessing the existence of crowding-out versus crowding-in effects. Using a panel of 145 countries from 1960 to 2007, the results suggest that government spending produces important crowding-out effects, by negatively affecting both private consumption and investment. Moreover, while the effects do not seem to depend on the different phases of economic cycle, they vary considerably among regions. The results are economically and statistically significant, and robust to several econometric techniques.

government spending crowding outFiscal PolicyGovernment SpendingCrowding-injel:E0Crowding-outSocial Sciencesjel:E6Fiscal Policy Government Spending Crowding-out Crowding-in.
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