@techreport{Basu2009paradox,
abstract = {This paper derives conditions for two key Keynesian propositions in a simple IS-LM model: (a) the paradox of thrift, and (b) the crowding-in of private investment expenditures by government expenditures. A linear specifcation of the model is then presented as a special case that can be used for empirical analysis. Using data for the US economy for the period 1959 - 2009, time series estimation of the linear model using instrumental variables regression shows that the paradox of thrift and crowding-in are real possibilities, especially in the sub-period, 1974 - 2009, that excludes the Golden Age of capitalism.},
address = {Amherst, Mass.},
author = {Deepankar Basu},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E12; E20; 330},
language = {eng},
number = {2009-14},
publisher = {Univ. of Massachusetts, Dep. of Economics},
title = {The paradox of thrift and crowding-in of private investment in a simple IS-LM model},
type = {Working Paper, University of Massachusetts, Department of Economics},
url = {http://hdl.handle.net/10419/64189},
year = {2009}
}
