Crowding-out-Effekte kommunaler Schuldenpolitik in der Bundesrepublik Deutschland

Though a short analysis of statistical data reveales a procyclical behavior in expenditure- and deficit-policy of German localities, business cycles will not be intensified necessarily, because public expenditures may cause a crowding-out of private demand. The crowding-out-debate shows, that there exists a number of plausible theoretical crowding-out-mechanisms. The empirical findings, however, are very heterogenious. The tests are also full of conceptual fallacies. As German localities finance deficits through book credit from banks it follows, that stronger crowding-out effects will occur than through financing the deficit via bonds. The reason for this is a greater tightness of bank-liquidity