Using over a half century of data, this empirical study adopts a simple loanable funds model to investigate the impact of federal budget deficits in the U.S. on the ex post real interest rate yield on ten year U.S. Treasury notes. Three estimates using annual data for three different time...

In this paper we evaluate the fiscal sustainability of the Dominican Republic using the recursive algorithm proposed by Croce and Juan-Ramón (2003). The results indicate that the Dominican economy shows an unsustainable fiscal position in much of the period, but for the years 2014-2016 would be...

In 2013, federal personal income tax increases were implemented in the U.S. under provisions of two federal statutes: the American Taxpayer Relief Act of 2012 and the Patient Protection and Affordable Care Act of 2010. Based on our analysis of data for the time period 1970-2008, we argue that...

Long term corporate planning and the effective pursuit of profits require, among other things, an understanding by management of the factors that influence the cost of borrowing. This study empirically identifies key factors that influence the cost of borrowing for U.S. firms, which cost is...

This study provides current empirical evidence on the impact of net U.S. government borrowing (budget deficits) on the nominal interest rate yield on ten-year Treasury notes. The model includes an ex ante real short-term real interest rate yield, an ex ante real long-term interest rate yield,...

This note has addressed the empirical issue of crowding out by examining the proportion of GDP devoted to private investment in new physical capital in part as a function of the proportion of GDP devoted to federal government outlays. Three alternative models were estimated, all of which...

This study examines the existence of crowding out in the United States by determining to what degree the proportion of actual GNP that was devoted to investment was affected by the proportion of GNP devoted to federal government spending. The empirical results in the regression estimation...

Using quarterly data and dealing with the ex post real rates on three month U.S. Treasury bills and 20 year U.S. Treasury bonds, this empirical note has estimated an IS-LM based regression by 2SLS. The results indicate that the budget deficit raises the slope of the yield curve. Furthermore, to...

This study examines the existence of crowding-out in the United States by determining to what degree the proportion of GNP devoted to private investment in new capital was affected by the proportion of GNP devoted to aggregate federal government spending. The evidence here strongly supports the...

Evans has argued that the federal budget deficit in the United States does not influence the real rate of interest. Indeed, Evans (1985, p. 85) goes so far as to claim that “in over a century of U.S. history, large deficits have never been associated with high interest rate”. By contrast,...