Crowding-Out and Crowding-In Effects of the Components of Government Expenditure
نویسندگان
چکیده
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 expenditure. Expenditure on social security and welfare reduces investment in all samples while expenditure on transport and communication induces private investment in developing countries. Journal of Economic Literature Classification: E2, E6, O4
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