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2017 | OriginalPaper | Chapter

8. Test Results: Investment Spending and Borrowing Models (Two-Variable Deficit)

Author : John J. Heim

Published in: Crowding Out Fiscal Stimulus

Publisher: Springer International Publishing

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Abstract

This chapter undertakes 25 tests of different models to determine if the government deficit has a significant, measurable crowd out effect on investment as well as a stimulus effect. The models included 16 OLS and 9 2SLS models. Results overwhelmingly indicated crowd out adversely affected investment spending. The two separate variables (Revenue, Spending) definition of the deficit was used, with coefficients calculated for each, to see if the two types had different effects.

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Metadata
Title
Test Results: Investment Spending and Borrowing Models (Two-Variable Deficit)
Author
John J. Heim
Copyright Year
2017
DOI
https://doi.org/10.1007/978-3-319-45967-7_8