Search results for " crowding-out."

showing 3 items of 3 documents

How best to measure discretionary fiscal policy? Assessing its impact on private spending

2013

We develop a novel empirical approach to assess the effect of discretionary fiscal policy on private spending consisting of three stages: 1) extract the discretionary component of fiscal policy by estimating a fiscal policy rule; 2) use the residuals of the first-stage regression to investigate the existence of crowding-in and/or crowding-out effects both in the short and the medium term; and 3) condition the response of private spending on a set of country characteristics. We find that an expansion in discretionary fiscal policy boosts growth in the short term, but is detrimental in the medium term. In addition, the empirical findings suggest that the effect of discretionary fiscal policy …

MacroeconomicsEconomics and EconometricsGovernmentCrowding in05 social sciencesPrivate spending1. No povertySettore SECS-P/02 Politica EconomicaFiscal unionFiscal policyTerm (time)Medium termCrowding-in and Crowding-out effects0502 economics and business8. Economic growthOpenness to experienceEconomics050207 economicsDiscretionary fiscal policy050205 econometrics Economic Modelling
researchProduct

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.
researchProduct

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.
researchProduct