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Financial Times: The myth of crowding out
2 December 2019
Yet, as it turns out, this economic theory might not hold. A new working paper by Enrico Moretti, John Van Reenen, , Claudia Steinwender, from the economics departments of the University of California, Berkeley and MIT, and the MIT Sloan School of Management respectively, explores one particular segment of federal spending - defence research and development - and its effects on private sector R&D expenditure.