This paper evaluates the effect of shocks in government investment on private investment and national income, focusing on "crowding-in" or "crowding-out" effect in India. Recent studies do not deal with this issue by taking account of the heterogeneous effect of public investment as regards to...

This paper evaluates the effect of shocks in government investment on private investment and national income, focusing on "crowding-in" or "crowding-out" effect in India. Recent studies do not deal with this issue by taking account of the heterogeneous effect of public investment as regards to...

The Fiscal Responsibility and Budget Management (FRBM) Act 2003 was introduced in India in order to reduce revenue deficit by curtailing revenue expenditure. This paper examines the impact of public expenditure by type and nature on the income by constructing new data on combined capital...