Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Crowding Out and Crowding in within Keynesian Framework. Do We Need Any New Empirical Research Concerning Them?
Issue: Vol. 7, No 2, 2014
Published date: 20-05-2014 (print) / 20-05-2014 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Adam P. Balcerzak
Elżbieta Rogalska
Keywords: fiscal policy, crowding out, crowding in, stabilization policy
DOI: 10.14254/2071-789X.2014/7-2/7
Index PUBMS: 1eeaed95-aa13-11e7-8eae-080027f4daa0
Language: English
Pages: 80-93 (14)
JEL classification: E62, H31, H32

Last global financial crisis resulted in common among developed countries implementation of expansionary fiscal policy as an anti-recession tool. This led to the renewal of academic discussion on stabilization effectiveness of fiscal policy. In this context, the main research goal of this paper is to give theoretical analysis of the determinants of counter-cyclical effectiveness of fiscal policy with special concentration on crowding out and crowding in effects. Methodologically the analysis is done within Keynesian IS-LM framework within the assumption of expectations of economic actors. The theoretical analysis is confronted with the review of empirical papers based on the experiences of developed countries.