Private and givernment investment: a study of three OECD countries

Mehdi S. Monadjemi, Hyeon-Seung Huh

Research output: Contribution to journalArticle

9 Citations (Scopus)

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. [E62, E63].

Original languageEnglish
Pages (from-to)93-104
Number of pages12
JournalInternational Economic Journal
Volume12
Issue number2
DOIs
Publication statusPublished - 1998 Jan 1

Fingerprint

Private investment
OECD countries
Government spending
Time series data
Profit
Crowding-out effect
Error correction model
Empirical results
Impulse response function
Government
Variance decomposition

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

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Private and givernment investment : a study of three OECD countries. / Monadjemi, Mehdi S.; Huh, Hyeon-Seung.

In: International Economic Journal, Vol. 12, No. 2, 01.01.1998, p. 93-104.

Research output: Contribution to journalArticle

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