Sahu, Jagadish Prasad; Panda, Sitakanta - In: Economics Bulletin 32 (2012) 2, pp. 1125-1132
We reexamine the crowding out hypothesis for India for the period 1970-71 to 2009-10. Applying a flexible accelerator model in a VECM framework, we find that government investment crowds out private investment in the long run while GDP has a significantly positive impact on the later. We also...