This Note endeavors to illustrate the relevance of the impact of the budget deficit upon the interest rate to the issue of crowding out. It is argued that empirical studies of the impact of deficits upon interest rates may be very useful in det­ermining whether (and how) crowding out occurs,...

This brief Note provides strong empirical evidence that federal govern­ment deficits can indeed have a positive and significant impact upon short­ term interest rates; the findings in this paper thereby establish another mechanism for the transmission of crowding out. This study differs from...

The present paper examines the impact that budget deficits exercise on economic growth in the United States. Using a simple growth model that includes a variety of public policy variables, we provide Instrumental Variables (IV) estimates that indicate growth in the United States over time. The...

This study empirically investigates the impact of the federal budget deficit on the nominal interest rate yield on high grade long term tax free municipal bonds. Within a system that includes income tax rates, international capital flows, and the primary budget deficit, which excludes net...

This study investigates whether federal government budget deficits in the U.S. over the 1990-99 time period acted to crowd out private investment in new plant and equipment. Using quarterly data, empirical estimations clearly indicate that private investment was in fact negatively impacted by...

This study empirically finds, using ECM, that the primary federal budget deficit shares a bi-directional relationship with the ex ante real interest rate yield on long term municipal bonds. That is, the primary budget deficit acts to raise the real municipal bond yield whereas that yield also...

The voter participation rate in the U.S. varies significantly from one region to another. At the state level, the percentage of the population that was eligible to vote and that actually did so ranged from a low of 33.5 percent (Texas) to a high of 62.1 percent (South Dakota). The purpose of...

This article empirically examines the impact on interstate net migration of differential state and local property tax and transfer policies in the United States by race, age and sex for the period 1965-70. The results offer considerable support to the Tiebout hypothesis that the consumer-voter...

This extension of the rational voter model differs from prior studies in three ways: its adoption of aggregate voting data; its use of data that are non-demographic in nature; and its use of data that are time series rather than cross section. The study finds that the aggregate voter participation...

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...