Crowding out fiscal stimulus : testing the effectiveness of US government stimulus programs / John J. Heim.

Format:

Book

Author/Creator:

Heim, John J., author, copyright holder.

Contributor:

Springer Nature (Firm), publisher.

Language:

English

Subjects (All):

Government spending policy--United States--20th century.

Government spending policy.

Government spending policy--United States--21st century.

Deficit financing--United States--20th century.

Deficit financing.

Deficit financing--United States--21st century.

Consumption (Economics).

United States--Economic conditions.

United States.

Economic conditions.

Economic history.

Physical Description:

xxi, 272 pages : illustrations ; 22 cm

Place of Publication:

Cham, Switzerland : Palgrave Macmillan, [2017]

Summary:

"This book presents overwhelming evidence that US government stimulus programs over the past fifty years have not worked. Using the best and most modern econometric testing models, it applies 228 separate hard science tests to examine the effects of different stimulus models that should, in theory, have shown positive results. By testing every possible alternative interpretation, starting with one time period and then retesting in three additional time periods, this definitive study finds that even when favoring pro-stimulus Keynesian models, public financing through government tax cuts and spending increase programs is more likely to drive down - or 'crowd out' - as much private sector spending as it stimulates in the public sector."--Publisher's website.

Contents:

Introduction

Theory of crowd out

Literature review

Methodology

Test results : consumer spending and borrowing models (one-variable deficit)

Test results : investment spending and borrowing models (one-variable deficit)

Test results : consumer spending and borrowing models (two-variable deficit)

Test results : investment spending and borrowing models (two-variable deficit)

Are finding of one- and two-variable deficit models consistent?

Effects of stimulus programs on GDP, net of crowd out effects

Dynamic effects

Alternatives to financing stimulus programs with domestic borrowing

A note on the disposable income variable used in consumption models

Do crowd out effects differ in recession and non-recession periods?

Does the Gale and Orszag hypothesis explain tax and spending effects better in recessions than non-recession periods?

Summary of findings and conclusion.

Notes:

Includes bibliographical references (pages 263-265) and index.

ISBN:

331945966X

9783319459660

OCLC:

954535562