The Crowding Out and Crowding In Effects of the Government Fiscal Policy on the Real Estate Investment and Public Prosperity in Iran

According to the Keynesian Model, the effectiveness of fiscal stabilization policy will rest on the size of fiscal multipliers and one of the most important and effective factors on the fiscal increasing coefficient can be the same crowding out & crowding in effects of the government fiscal policy on the private sector's investment on the real estate which it has been taken into consideration over the last few decades. Since, there is an interaction among the governance variables, government and investment and therefore an active private sector's investment is known as a very significant strategy in the direction of retaining the economic sustainable growth and with regards to this important matter in this study, we have taken into account the simultaneous effects of economic indexes, prosperity index, economic freedom index, governance index and comprehensive sanctions on the real estate investment and Iranian people's welfare applying the Multilevel GLM method from 1985 to 2019. Results of such study show that the government's macro policy makings have had a crowding out effect on the private investments on the real estate meanwhile the private investments on the real estate, bad governance and low and non-inclusive economic growth have lead to the small participation of manpower and losing the social capital and generally speaking, the failure of ensuring the social welfare and prosperity.