Talk:Crowding out (economics)

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Are tax-cuts necessarily associated with deficit spending as indicated in the opening paragraph of the page?

T. Rates 11:10, 16 November 2006 (UTC)

[edit] Linking this page to its French alter ego

I have no idea how to add the French tag on the left bar, but this article exists in the French wikipedia (effet d'éviction). It would be great if someone adds the link. Yobaranut 00:21, 6 May 2007 (UTC)

[edit] Crowding out has much wider scope than implied here

Crowding out is a far more general term than is implied here. Consider two behaviors A & B that achieve some end. Efforts to encourage A are said to crowd out B. This maybe a hypothetical concern, a substantive one, or a proven effect; but in most cases the term is used to raise the concern and often to cast doubt on the efficacy of encouraging A. The example given is a good case study in all that.

Another example is the well documented effect that intrinsic motivations are crowded out by the introduction of extrinsic motivations. If you pay somebody to read it will tend to reduce how much they read. This is an economic issue since the application of financial motivations can be presumed to crowd out intrinsic ones. The classic and extensively studied example is the profit v.s. nonprofit blood donation economy.

The crowding out effect is also seen in the standards setting space, where setting a standard set of practices will crowd out other practices. Which can be good or bad depending on where you stand. Again since standards are key to shaping how the supply chain functions this is an economic issue.

The existing article isn't particularly economic, it's in the intersection of politics and economics; Libertarian even in it's tone. Bhyde 16:30, 13 June 2007 (UTC)