HEIM, John J. - In: Applied Econometrics and International Development 12 (2012) 2
Government deficits financed by domestic borrowing were found to crowd out private borrowing and spending by consumers …, because stimulus effects are smaller than the crowd out effects. Spending deficits had a zero net impact. This study provides … first time econometric evidence that crowd out effects prevail during recessions, and that spending and tax cut deficits …