• Corpus ID: 17955889

Implications of the Government Deficit for U.S. Capital Formation

  title={Implications of the Government Deficit for U.S. Capital Formation},
  author={Benjamin M. Friedman},
Widespread concern, even alarm, over the U.S. government’s budget deficit has become one of the leading public policy issues of the decade. Talk about large federal deficits that will persist throughout the 1980s now dominates discussions otherwise intended to focus on specific spending needs--defense, for example, or medical care supports--or on tax restructuring. It also now dominates discussions about the proper course for monetary policy, about the effect of the dollar’s international… 

Figures and Tables from this paper


Over many years, Ben Friedman’s economic research and writings in political economy frame economic analysis of— and moral consideration of—large government budget deficits and the need for fiscal

Reaganomics: A Historical Watershed

  • J. Komlos
  • Economics, History
    SSRN Electronic Journal
  • 2018
The socio-economic impact of Reaganomics and its long-run deleterious legacy is documented. The preponderance of data indicate that economic growth was not particularly impressive in the wake of the

Is the Federal Debt Raising Corporate Profits and Reducing Labor's Share of National Income?

The federal debt-to-GDP ratio has accelerated in recent years to levels unseen in the U.S. since the post-World War II decline. At the same time, the profit share of national income is at post-war

The Macroeconomic Effects of Government Debt on Capital Formation in the United States: An Empirical Investigation

In this paper we empirically examine the effects of government debt on interest rate, price, output and capital formation in the USA during the post-war period. Using co-integration methodology

Is Public Debt a Burden for India

In this paper, we investigated whether the government debt caused a burden for India over the period 1970-2013. We achieved this goal using Bohn's (1998) hypothesis in a structural VAR framework.

The effects of public debt on capital formation in India: evidence from structural VAR analysis

This paper provides the empirical evidence of the effects of public debt on interest rate, output and gross fixed capital formation in India during the period between the fourth quarter of 1998 and

Budget deficit mythology

Speculations About the Speculation _ David t Beers / itt t^ r\ 11

Reaganomics: una línea divisoria (Reaganomics: A historical watershed)

<b>Spanish Abstarct:</b> Documentamos el impacto de la Reaganomics y su legado de largo plazo. Los datos indican que el crecimiento económico no fue particularmente impresionante después de los



Source: U.S. Department of Commerce, Survey of Current Business

  • Source: U.S. Department of Commerce, Survey of Current Business

Note: Current account cumulative from 1946

  • Note: Current account cumulative from 1946

1-Second quarter GNP

  • 1-Second quarter GNP