Crowding Out in an Integrated World Capital Market
Abstract
This Extended Master's Paper extends the paper West German Fiscal Deficit: Effects on Economic Activity which I wrote under the direction of Dr. Gapinski for Econ 5205. That paper used regression analysis to try to determine the relationship between fiscal deficits or surpluses and interest rates, investment and the balance of trade over the twenty year period from 1970 through 1989. Regression analysis in the original paper provided strong evidence for the correlation between running a fiscal deficit and having a trade deficit, commonly referred to as twin deficits. Using the Micro TSP software package, the author regressed the dependent variable of the trade deficit, or surplus, on the independent variables of the fiscal deficit, the money supply and a lagged dependent variable.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 16, 1993
- Accession Number
- ADA268152
Entities
People
- Ryan C. Cecil
Organizations
- Air Force Institute of Technology