The impact of budget deficits on private investment is an unsettled issue. If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect. On...

The main objective of this paper is to analyze empirically the effects of government spending on private investment, evaluating the existence of crowding-out/-in effects, in Turkey for the 1975-2011 period. In contrast to revious studies, we employed in the paper the modified version of David A....

This paper analyzes the dynamic impact of discretionary government consumption purchases on private demand. Using a panel of 132 countries from 1960 to 2008, we find that while discretionary changes in government consumption lead to crowding-in effects in the short run, crowding-out effects take...

This study analyses the effects of public and private investment on Portuguese GDP in the period 1960-2013. After a brief review of the literature based on works developed primarily in the context of VAR analyses, such as those by Pereira and Andraz (2005), and Afonso and St Aubyn (2008), an...

In this study, Greece’s economic program has progress toward its sustainable growth by boosting competitiveness, strengthening financial sector stability, and securing sustainable public finances. The fiscal and broader reforms are to achieve the program’s medium-term objectives....

The abstract summarizes the Report on Observance of Standards and Codes and Fiscal Transparency Module of Indonesia. It highlights that a strategy for improving transparency and strengthening fiscal management should be included in the reform program, including implementing recent changes in...

This Selected Issues paper and Statistical Appendix surveys the main reasons for Papua New Guinea’s disappointing economic performance, highlighting the key impediments to growth in each of the main sectors of the economy. The paper outlines the structural reforms that could help reduce...

This report assesses the Observance of Standards and Codes on Fiscal Transparency for Moldova. Moldova has made progress in recent years in improving fiscal transparency, and meets the Code of Good Practices on Fiscal Transparency in some areas. However, shortcomings remain in several areas, and...

This Selected Issues paper analyzes the strengths and weaknesses of the fiscal framework of Sweden, and discusses some guidelines for their modification. It describes the Swedish experience under the new fiscal framework, and documents the increasing expenditure profile during the economic boom....

This report examines the Observance of Standards and Codes on Fiscal Transparency for Spain. The assessment reveals that over the last several years, Spain has made major progress not only in macroeconomic and fiscal adjustment, but also in modernizing and strengthening its fiscal institutions...