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Title: |
Private and Government Investment: A Study of
Three OECD Countries |
| Author: |
Monadjemi,
Mehdi S.; Huh, Hyeonseung |
| Author
Affiliation: |
U New S Wales |
| Source: |
International Economic Journal, Summer 1998, v. 12, no. 2, pp. 93-105 |
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Publication Date: |
Summer 1998 |
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Abstract: |
This paper examines the relationship
between private investment and government spending in Australia, Britain
and the United States. Since all time series data are stationary in
first difference and cointegrated, these series are represented by an
error correction model. Variance decomposition and impulse response
functions are employed to investigate the effects of government spending
on private investment. Generally the empirical results provide limited
support for "crowding out" effects of government investment on private
investment. The rate of interest and the corporate profit ability showed
significant effects on private investment in two out of three cases. |
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