Does the expansionary government spending crowd out the private consumption?

Tourism development and economic growth: A closer look at panels

“…In the literature, to take the averages across time and across countries is the essence of the panel time series; however, taking the averages over cross-sectional units can be very sensitive to outliers (Nieh & Ho, 2006). To make up for this weakness, the FMOLS method is used to estimate The null hypothesis of these tests is that the panel series has a unit root (nonstationary series) except with the Hadri test which has no unit root in panel series.…”

Intertemporal Substitution in Consumption: A Literature Review

“…Bean () argues that “not all public spending is of the hole‐in‐the‐ground variety; spending on services such as health and education and on the police force is a substitute for private expenditure.” Although this statement suggests that private and public consumption may not be separable, many studies include government spending in an addilog utility function as introduced in Equation . Examples are Auteri and Constantini (), Ho (), and Nieh and Ho () who estimate values of the EIS in private consumption below 0.45, between 1.25 and 7.5 (depending on different subsamples, see Section ), and around 0.8.…”

“…Many other studies report EIS estimates from different non‐United States and non‐United Kingdom countries without including rule‐of‐thumb consumers. Koedlijk and Smant () look at eight developed countries in North America, Europe, and Japan, while Nieh and Ho () study 23 OECD countries. Auteri and Constantini () and DelaCruz et al .…”

Lack of Commitment and the Level of Debt

“…To that end, we solve the model for different values of the curvature parameter . Typical estimates for this parameter are about 1.1 for the United States (Amano and Wirjanto ()) and do not exceed 0.8 in panel studies for the OECD countries (Nieh and Ho, ). Also, in theoretical models with political disagreement the parameter is typically set below unity .…”