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Public and Private Spending: Some Australian Evidence

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  • Mehdi S. Monadjemi

Abstract

This paper examines empirical relationships between government expenditure and private spending in Australia, to see whether government expenditure reduces, or crowds out, private expenditure or encourages it. Particular attention is paid to the effect on private investment expenditure and the possibility of a change occuring in the relationship between public and private is examined. Regression analysis found no significant evidence of crowding out. Public investment was found to compliment private investment in the period before 1974, but not in the period since then.

Suggested Citation

  • Mehdi S. Monadjemi, 1995. "Public and Private Spending: Some Australian Evidence," The Economic and Labour Relations Review, , vol. 6(1), pages 41-51, June.
    • Handle: RePEc:sae:ecolab:v:6:y:1995:i:1:p:41-51
    DOI: 10.1177/103530469500600103
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