Crowding out vs. crowding in effects in transitional countries

Crowding out Effect of Foreign Aid in Selected Developing Countries: Panel Data Evidence

Crowding Out or Crowding In? UI and Private Insurance

This paper explores the welfare consequences of unemployment insurance when private insurance markets are subject to enforcement frictions that limit debt accumulation, endogenously determining individual borrowing limits as a function of the length of unemployment. Reducing the replacement rate in the model initially increases borrowing, as the value of default declines significantly. As the r...

Crowding out (in) effect of FDI on domestic investment in the Middle East and North Africa countries

Theoretically and empirically, FDI may have positive (complementary) or negative (substitution) effect on the host country’s domestic investment. This study aims to examine the existence of crowding out (in) effect of FDI for MENA countries with high- and low- level income. Using the GMM, several regressions were estimated over the periods of 1981-2017 and 2001-2017. The immediate positive effe...

Financial Crowding Out

Using a novel dataset of accounting and market information that spans most publicly traded firms over the last century, we show that government deficit financing crowds out nonfinancial corporate debt financing and investment. Specifically, an increase in the supply of treasury debt is associated with a significant reduction in corporate leverage, debt issuances, and investment, but no signific...

Crowding-Out and Crowding-In Effects of the Components of Government Expenditure

We examine the effects of disaggregated government expenditure on investment using fixedand random-effect methods. Using the government budget constraint, we explore the effects of taxand debt-financed expenditure for the full sample, and for sub-samples of developed and developing countries. In general, tax-financed government expenditure crowds out more investment than debtfinanced expenditur...