Fiscal policy, profits and investment: some additional evidence

This article provides time series evidence on the effects of fiscal policy on profits and investment in the US. In addition to neoclassical models of investment and profits we also consider Keynesian models. Our findings provide some support for the neoclassical views. However, Keynesian explanation...

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Bibliographic Details
Published in:Applied economics letters 2008-10, Vol.15 (13), p.1047-1051
Main Authors: Atesoglu, H. Sonmez, Emerson, Jamie
Format: Article
Language:English
Subjects:
Economic analysis
Economic models
Fiscal policy
Interest rates
Investment
Keynesian theory
Keynesianism
Profit
Studies
Time series
U.S.A
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Summary:This article provides time series evidence on the effects of fiscal policy on profits and investment in the US. In addition to neoclassical models of investment and profits we also consider Keynesian models. Our findings provide some support for the neoclassical views. However, Keynesian explanations, which allow for the effects of the real interest rate, receive strong support from the data.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850600993515