You are here

The impact and effectiveness of capital investments in the American Recovery and Reinvestment Act of 2009: an assessment using Keynes economic theory

Download pdf | Full Screen View

Date Issued:
2014
Summary:
The purpose of this study is to find out the effect of government spending on capital investments in the American Recovery and Reinvestment Act (ARRA) of 2009 on GDP and employment growth. This research utilized US quarterly data from 2003 QI to 2013 QII. In the first part the research used variables from the Keynes economic model and utilized two-stage least square analysis to assess the effect of government spending on GDP. The results from the regression analysis indicate that an increase of one dollar in government spending increases GDP by 1.569 dollars. The researcher found that the general government spending multiplier was 1.9. The coefficient for government spending in the Recovery Act was 0.383, implying that for every one dollar in government spending, Recovery Act spending on capital investments contributed 0.383 dollars.
Title: The impact and effectiveness of capital investments in the American Recovery and Reinvestment Act of 2009: an assessment using Keynes economic theory.
141 views
60 downloads
Name(s): Byaruhanga, Vincent, author
Thai, Khi V., Thesis advisor
Florida Atlantic University, Degree grantor
College for Design and Social Inquiry
School of Public Administration
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Created: 2014
Date Issued: 2014
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 150 p.
Language(s): English
Summary: The purpose of this study is to find out the effect of government spending on capital investments in the American Recovery and Reinvestment Act (ARRA) of 2009 on GDP and employment growth. This research utilized US quarterly data from 2003 QI to 2013 QII. In the first part the research used variables from the Keynes economic model and utilized two-stage least square analysis to assess the effect of government spending on GDP. The results from the regression analysis indicate that an increase of one dollar in government spending increases GDP by 1.569 dollars. The researcher found that the general government spending multiplier was 1.9. The coefficient for government spending in the Recovery Act was 0.383, implying that for every one dollar in government spending, Recovery Act spending on capital investments contributed 0.383 dollars.
Identifier: FA00004183 (IID)
Degree granted: Dissertation (Ph.D.)--Florida Atlantic University, 2014.
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): Includes bibliography.
Subject(s): Business cycles -- United States -- History -- 21st century
Investment analysis
Keynes, John Maynard -- 1883-1946
Keynesian economics -- Mathematical models
Solow growth model
Solow, Robert M.
United States -- American Recovery and Reinvestment Act of 2009
Held by: Florida Atlantic University Libraries
Sublocation: Digital Library
Links: http://purl.flvc.org/fau/fd/FA00004183
Persistent Link to This Record: http://purl.flvc.org/fau/fd/FA00004183
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.