FOREIGN AND PRIVATE DOMESTIC INVESTMENTS IN INDONESIA: CROWDING-IN OR CROWDING-OUT?

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...

Foreign Aid and Domestic Savings: the Crowding out Effect

The paper examines the relationship between foreign aid and savings using annual data for 119 countries. Regressions for each country are run separately in order to find which countries have a positive aid-saving experience. The explanatory variables chosen are thought to be exogenous to current economic policy. Countries are placed into five categories according to the strength of the aid-savi...

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

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...

Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits

THE BUDGET DEFICIT of the federal government has emerged as a central focus in American public policy debate, attracting anxious attention from a variety of constituencies. The left now raises the specter of enlarged deficits in opposition to the increasingly audible calls for tax reduction, while the right continues to cite the same threat against new government spending initiatives. In either...