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AN EMPIRICAL ANALYSIS OF THE “CROWDING OUT” EFFECT OF FISCAL POLICY IN THE UNITED STATES AND CANADA
Author(s) -
Cebula* Richard J.
Publication year - 1978
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1978.tb00650.x
Subject(s) - crowds , crowding out , economics , inflation (cosmology) , fiscal policy , macroeconomics , investment (military) , term (time) , crowding , monetary economics , political science , politics , law , psychology , physics , computer security , quantum mechanics , theoretical physics , computer science , neuroscience
SUMMARY This paper uses both single‐equation and multi‐equation systems to examine whether fiscal policy ‘crowds out’ private investment. It is found that, for both the United States and Canada, this is in fact the case. In addition, it is shown that this crowding out leads to long term inflation.