Ricardo M. Sousa

Ricardo M. Sousa is an Assistant Professor at the University of Minho and a Researcher at the London School of Economics, where he completed his PhD programme. He worked for the European Central Bank and the Central Bank of Portugal. His interests include Macroeconomics, Economic Policy, Asset Pricing and Emerging Markets. His research has been published in journals such as Applied Financial Economics, Applied Economics, Economic Modelling, Emerging Markets Finance and Trade, Empirical Economics, Journal of Empirical Finance, Journal of International Money and Finance and North American Journal of Economics and Finance, and covered in the media such as The Economist.

Papers Published in World Economics:

Does Government Spending Crowd Out Private Consumption and Investment?

This paper reviews the theoretical and empirical literature on the existence of crowding-out versus crowding-in effects. It also provides some new empirical evidence on the effect of changes in government spending on private consumption and investment by using a panel of 145 countries from 1960 to 2007. We find that government spending crowds out both private consumption and investment. In addition, we show that this result does not depend on the phase of the business cycle, but differs substantially among regions. We also find that the crowding-out effects are larger in the event of expansionary changes.

Read Full Paper >