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How Should the Surpluses Be Spent?

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  • David Alan Aschauer

Abstract

What are the likely economic consequences, particularly on saving, investment, and long-term economic growth, of three alternative uses of budget surpluses: paying down the debt, increasing government spending, and cutting taxes?

Suggested Citation

  • David Alan Aschauer, "undated". "How Should the Surpluses Be Spent?," Economics Policy Note Archive 98-2, Levy Economics Institute.
    • Handle: RePEc:lev:levypn:98-2
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    References listed on IDEAS

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    1. Aschauer, David Alan, 1989. "Does public capital crowd out private capital?," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 171-188, September.
    2. Kevin A. Hassett, 1999. "Tax Policy and Investment," Books, American Enterprise Institute, number 53049, September.
    3. James R. Hines & Richard H. Thaler, 1995. "The Flypaper Effect," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 217-226, Fall.
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    Cited by:

    1. José Luis Hernández Mota & Iván Abdel Marín Medrano, 2021. "Financiamiento sostenible de la inversión pública: evidencia para México, 1990-2019," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 13(1), pages 43-75, March.
    2. Wynne Godley & Alex Izurieta, 2001. "As The Implosion Begins . . .? Prospects and Policies for the U.S. Economy: A Strategic View," Economics Strategic Analysis Archive 01-7, Levy Economics Institute.

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