Private and givernment investment: a study of three OECD countries

Mehdi S. Monadjemi, Hyeonseung Huh

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


This paper examines the relationship between private investment and government spending in Australia, Britain and the United States. Since all time series data are stationary in first difference and cointegrated, these series are represented by an error correction model. Variance decomposition and impulse response functions are employed to investigate the effects of government spending on private investment. Generally the empirical results provide limited support for "crowding out" effects of government investment on private investment. The rate of interest and the corporate profit ability showed significant effects on private investment in two out of three cases. [E62, E63].

Original languageEnglish
Pages (from-to)93-104
Number of pages12
JournalInternational Economic Journal
Issue number2
Publication statusPublished - 1998 Jun

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)


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