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Research at OU

Humanities & Social Sciences

Kuwano, S.*1 ; Namba, S.*2 ; Komatsu, M.*3 ; Kato, T. ; Hayashi, Y. *1(Graduate School of Human Sciences) *2(Professor Emeritus) *3(Graduate School of Engineering)
Auditory and Visual Interaction in the Aesthetic Evaluation of Environment
Journal of the International Association of Empirical Aesthetics,19, 191-200 (2001)

2 Ono, Y. ; Shibata, A. (Institute of Social and Economic Research)
Government Spending, Interest Rates, and Capital Accumulation in a Two-Sector Model
Canadian Journal of Economics,34, 903-920 (2001)

Theoretically, a temporary fiscal expansion has been shown to raise the interest rate and hence reduce private investment. However, it is well known that this result is often inconsistent with empirical findings. By extending a two-sector static model into a dynamic optimization setting, this paper provides a theoretical basis that explains the mixed empirically findings. It also shows that there is a case in which a temporary fiscal spending raises the short-term interest rate and yet stimulates private investment.


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