This paper analyses the effect of government domestic borrowing on private investment using an Auto Regressive … domestic borrowing by the government can negatively affect investment and eventually hurt economic growth. The paper recommends … investment. …

the model used in this paper, savings and investment are co-determined through adjustments in the real interest rate, and … quantitatively large. For plausible parameter values, the differences in growth rates, savings rates and investment rates are of the … of overlapping generations, in the context of a class of endogenous growth theories with investment adjustment costs. In …