Crowd-in Effect of Highway Capital on Private Investment in the United States

2021 ◽  
pp. 036119812110179
Author(s):  
Bingxin Yu ◽  
Valentin Vulov
Keyword(s):  
United States ◽  
Private Sector ◽  
Public Investment ◽  
Private Investment ◽  
The United States ◽  
Sensitivity Analyses ◽  
Infrastructure Investment ◽  
Annual Data ◽  
Crowding Out ◽  
Private Sector Investment

This paper examines the impacts of public transportation infrastructure investment on private investment and whether public infrastructure investment tends to “crowd in” or “crowd out” private investment. “Crowding in” refers to situations where public investment encourages private sector investment, whereas “crowding out” refers to situations where public investment discourages private sector investment. This analysis applies the vector autoregression (VAR) methodology for an empirical study. Using national-level annual data from 1947 to 2017 in the United States, estimation results suggest that public investment in highways tends to crowd in private investment after an initial and temporary crowding-out effect. Most of the positive impacts on private investment accrue within 3 years after the initial public investment. The incremental impact diminishes almost completely after roughly 10 years. Alternative model specifications and sensitivity analyses further confirm the robustness of the model specification by yielding consistent and positive crowd-in effects within the first 3 to 5 years after the public investment.

scholarly journals PUBLIC, PRIVATE AND FOREIGN INVESTMENT NEXUS IN THE REPUBLIC OF NORTH MACEDONIA: CROWDING-IN OR OUT EFFECT?

2021 ◽  
Author(s):  
Vesna Garvanlieva Andonova ◽  
◽  
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Annual Data ◽  
Crowding Out ◽  
Foreign Direct Investments ◽  
The Public ◽  
Distributed Lag ◽  
Private Investments ◽  
Short Run ◽  
The Government

In the last two decades the economic growth of North Macedonia can be qualified as sluggish and volatile. In this period, the government has been proclaiming a narrative of fiscal and economic policies focused on public investment driven development and growth, yet the capital budget bias, has been significant with regularly overestimated plans vs. the outturn. The public investment-to-GDP ratio, has been an average 5.47%, ranging from minimum 4.0% (Y2007) to maximum 6.7% (Y2010). Simultaneously, the private investment-to-GDP ratio has been an average 17.1%, with minimum of 15% (in Y2005) and a maximum value of 20.6% (in Y2008). The FDI inflows, have been ranging from minimal below 1% in 2014 to maximum 12.7% in 2001, with average of 4.6% per annum. The trends of the variables straightforwardly do not suggest a nexus between public and private investments i.e. causing crowding-in or crowding out effect. In this paper it is investigated whether public investment and foreign direct investments crowd-out or crowd-in the private investment in North Macedonia. To test this hypothesis, we use the available annual data on private investment, public investment, foreign direct investments and GDP for the period of 2000-2017 (in real terms). A model of autoregressive distributed lag bound testing is used for the variables private investment, public investment, GDP and foreign direct investment. The results indicate a crowding-out effect of public over private investments with significance of the foreign direct investments are expected to show whether there is crowding-in or -out effect of the public over private investment and crowding-in effect of the foreign direct investments. The crowding-out effect is immediate and short run.

INFLOW OF REMITTANCES AND PRIVATE INVESTMENT IN INDIA

2012 ◽  
Vol 57 (01) ◽  
pp. 1250004 ◽  
Author(s):  
HRUSHIKESH MALLICK
Keyword(s):  
Private Sector ◽  
Government Policy ◽  
Positive Impact ◽  
Significant Proportion ◽  
Private Investment ◽  
Output Growth ◽  
Crowding Out ◽  
Private Sector Investment ◽  
The Government ◽  
The Impact

Examining the impact of remittances on private investment, the study finds that remittances have an adverse impact on private investment and hence is apprehensive about its net positive impact on output growth in India. Therefore, the study suggests that the government policy should be designed toward inducing private sector to allocate more remittances for investments for leveling up the rate of economic growth. Otherwise, a significant proportion of remittances would result in increase in private consumption without desired contributory impact. The study also observes crowding out impact of public sector investment, while openness measure raises private sector investment.

scholarly journals Enigma of Public Assistance to Private Investment through Infrastructure: Evidence from Pakistan

2017 ◽  
Vol 3 (1) ◽  
pp. 1-12
Author(s):  
Ayza Shoukat ◽  
Khalil Ahmad ◽  
Muhammad Abdullah
Keyword(s):  
Private Sector ◽  
Investment Decisions ◽  
Principal Component ◽  
Private Investment ◽  
Annual Data ◽  
Infrastructure Development ◽  
Private Sector Investment ◽  
Long Run ◽  
Physical Infrastructure ◽  
Short Run

Purpose: Public physical infrastructure development has fairly large impacts on private sector investment decisions and through this; it can affect economic performance (growth). The current study intends to explore the course in which public infrastructure affects private sector investment in Pakistan and whether there exist long run equilibrium between them or not. Time series annual data from 1972 to 2015 has been employed.  Instead of using a single infrastructure indicator, the study has constructed a multidimensional composite index through principal component analysis (PCA). Real gross fixed capital formation is used as the proxy of private sector investment. The long run relationship is determined by Johansen's co-integration technique after checking for the order of integration. The empirical evidence shows that physical infrastructure availability is positively and significantly affecting private sector investment decisions. In addition, credit to private sector, per capita GDP, work force and inflation rate are positively and significantly affecting private investment. Further, private investment is sensitive to public physical infrastructure availability not only in long run but also in short run. A statistically significant and negative ECT (-1) term confirms the long run relationship and convergence towards equilibrium in case of Pakistan.  Findings of the study show that public physical infrastructure services endorse the private investment both in the long run and the short run

scholarly journals Testing of the crowding out effect for Turkey

2016 ◽  
Author(s):  
Veli Yılancı ◽  
Mücahit Aydın
Keyword(s):  
Private Sector ◽  
Unit Root ◽  
Structural Breaks ◽  
Public Investment ◽  
Unit Root Test ◽  
Crowding Out ◽  
Public Investments ◽  
Private Sector Investment ◽  
Long Run ◽  
Cointegration Tests

In this study, we test the effect of public investment on private sector investment for Turkey for the period 1980-2014. There can be three different types of relationship between them. Public investment can have crowding in effect on private sector investment. That is, an increase in public investments creates same way change in private sector investments. Public investment can have crowding out effect on private sector investment. In other words, an increase in public investments decreases private sector investments Public investment can have no effect on private sector investment. We first test the existence of the relationship between them by using recently introduced unit root and cointegration tests. We test the stationarity of the variables by using Kapetanios (2005) unit root test and test the long run relationship by employing Maki (2009) cointegration test. Both of the tests allow multiple structural breaks which determined endogenously. Since we find the long run relationship between public and private sector investments we examine the type of the effect using FMOLS cointegrating model which supports evidence for the crowding-in effect.    Keywords: Crowding Out Effect, Cointegration, Structural Breaks

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

Systematic Government Access to Private-Sector Data in the United States II

2017 ◽  
Author(s):  
Fred H. Cate ◽  
Beth E. Cate
Keyword(s):  
United States ◽  
Private Sector ◽  
Freedom Of Expression ◽  
The United States ◽  
Freedom Of Information ◽  
Privacy Rights ◽  
Reasonable Expectation ◽  
The Supreme Court ◽  
The Us ◽  
Sector Data

This chapter covers the US Supreme Court’s position on access to private-sector data in the United States. Indeed, the Supreme Court has written a great deal about “privacy” in a wide variety of contexts. These include what constitutes a “reasonable expectation of privacy” under the Fourth Amendment to the Constitution; privacy rights implicit in, and also in tension with, the First Amendment and freedom of expression; privacy rights the Court has found implied in the Constitution that protect the rights of adults to make decisions about activities such as reproduction, contraception, and the education of their children; and the application of the two privacy exemptions to the Freedom of Information Act (FOIA).

scholarly journals Natural History and Evolution of Anti-Interferon-γ Autoantibody-Associated Immunodeficiency Syndrome in Thailand and the United States

2019 ◽  
Vol 71 (1) ◽  
pp. 53-62 ◽  
Author(s):  
Gloria H Hong ◽  
Ana M Ortega-Villa ◽  
Sally Hunsberger ◽  
Ploenchan Chetchotisakd ◽  
Siriluck Anunnatsiri ◽  
...  
Keyword(s):  
United States ◽  
Natural History ◽  
The United States ◽  
Interferon Γ ◽  
Mycobacterium Abscessus ◽  
Annual Data ◽  
Persistent Infections ◽  
Ifn Γ ◽  
Immunodeficiency Syndrome

Abstract Background The natural history of anti-interferon-γ (IFN-γ) autoantibody-associated immunodeficiency syndrome is not well understood. Methods Data of 74 patients with anti-IFN-γ autoantibodies at Srinagarind Hospital, Thailand, were collected annually (median follow-up duration, 7.5 years). Annual data for 19 patients and initial data for 4 patients with anti-IFN-γ autoantibodies at the US National Institutes of Health were collected (median follow-up duration, 4.5 years). Anti-IFN-γ autoantibody levels were measured in plasma samples. Results Ninety-one percent of US patients were of Southeast Asian descent; there was a stronger female predominance (91%) in US than Thai (64%) patients. Mycobacterium abscessus (34%) and Mycobacterium avium complex (83%) were the most common nontuberculous mycobacteria in Thailand and the United States, respectively. Skin infections were more common in Thailand (P = .001), whereas bone (P < .0001), lung (P = .002), and central nervous system (P = .03) infections were more common in the United States. Twenty-four percent of Thai patients died, most from infections. None of the 19 US patients with follow-up data died. Anti-IFN-γ autoantibody levels decreased over time in Thailand (P < .001) and the United States (P = .017), with either cyclophosphamide (P = .01) or rituximab therapy (P = .001). Conclusions Patients with anti-IFN-γ autoantibodies in Thailand and the United States had distinct demographic and clinical features. While titers generally decreased with time, anti-IFN-γ autoantibody disease had a chronic clinical course with persistent infections and death. Close long-term surveillance for new infections is recommended.

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