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Crowding-out and crowding-in effects of the components of government expenditure

Ahmed, Habib; Miller, Stephen M.

Authors

Stephen M. Miller



Abstract

This article examines the effects of disaggregated government expenditure on investment using fixed- and random-effect methods. Using the government budget constraint, the analysis explores the effects of tax- and debt-financed expenditure for the full sample, and for subsamples of developed and developing countries. In general, tax-financed government expenditure crowds out more investment than debt-financed expenditure. Expenditure on social security and welfare reduces investment in all samples while expenditure on transport and communication induces private investment in developing countries.

Citation

Ahmed, H., & Miller, S. M. (2000). Crowding-out and crowding-in effects of the components of government expenditure. Contemporary Economic Policy, 18(1), 124-133. https://doi.org/10.1111/j.1465-7287.2000.tb00011.x

Journal Article Type Article
Publication Date Jan 1, 2000
Deposit Date Feb 3, 2011
Journal Contemporary Economic Policy
Print ISSN 1074-3529
Electronic ISSN 1465-7287
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 18
Issue 1
Pages 124-133
DOI https://doi.org/10.1111/j.1465-7287.2000.tb00011.x
Public URL https://durham-repository.worktribe.com/output/1544212