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Externality effect of the USA total, federal and state government expenditures on private investment, 1960-91

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  • Erkin Bairam

Abstract

The main objective of this short paper is to measure the impact of increases in total, federal and state government expenditures on private investment in the USA. For this purpose a framework based on a variable elasticity approach is used and tested. The results obtained conclusively support the 'accelerator principle' and 'crowding out' hypothesis.

Suggested Citation

  • Erkin Bairam, 1995. "Externality effect of the USA total, federal and state government expenditures on private investment, 1960-91," Applied Economics Letters, Taylor & Francis Journals, vol. 2(1), pages 23-25.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:1:p:23-25
    DOI: 10.1080/135048595357753
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    Cited by:

    1. Abdulrahman M. Jolo & Muammer Koç, 2023. "The Impact of Capital Formation on Economic Diversification in GCC Countries—Empirical Analysis Based on the PVAR Model," Sustainability, MDPI, vol. 15(14), pages 1-11, July.

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