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Crowding Out And Government Spending, Marie Carrasco
Crowding Out And Government Spending, Marie Carrasco
University Avenue Undergraduate Journal of Economics
The purpose of this paper is to provide a better understanding of the relationship between budget deficits and private investment and to contribute to the discussion of whether or not such a relationship exists. We test the robustness of Cebula's (1985) model by extending the time period, by testing the model using a proxy for one of the variables, and by de-trending the variables.