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Infrastructure Investment: Crowding-In vs Crowding-Out (2D)

Interactive 2D model of public infrastructure investment: watch government spending grow the public-capital stock while two competing channels — interest-rate crowding-out and productivity crowding-in — decide whether private investment ends up higher or lower than a no-public-investment baseline, then pan and zoom through the full history.

Economics & Social Systems2DModerate60 FPS📱 Mobile-adapted⇄ 3D version

Details

CategoryEconomics & Social Systems

RenderingCanvas 2D

DifficultyModerate

Target FPS60

ControlsSliders for the government infrastructure-spending rate, interest-rate sensitivity to borrowing (crowding-out strength β), infrastructure productivity elasticity (crowding-in strength φ), and private investment's interest-rate sensitivity (χ), plus play/pause and reset buttons. Drag the strip chart to pan through simulated history, scroll or pinch to zoom the time window.

economicsinfrastructurepublic investmentcrowding outfiscal policymacroeconomics

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Every dollar a government borrows to build roads, grids and ports does two things to the private sector at once. It can crowd in private investment by raising the productivity of private capital — better logistics and power make every factory more profitable. It can also crowd out private investment by pushing up the interest rate that borrowers of all kinds have to pay. This 2D version runs both channels side by side in real time: public and private capital bars grow block by block from the same macro model as the 3D original, a dashed ghost bar shows what the private sector would have accumulated with zero public investment, a GDP dial and an interest-rate gauge track the aggregate consequences, and a pannable, zoomable strip chart lets you scrub back through the whole run to see exactly when one channel started winning over the other.

⚙ Under the hood

A 2D macro model of public infrastructure spending where two competing channels — interest-rate crowding-out and infrastructure-productivity crowding-in — determine whether private investment ends up higher or lower than a no-public-investment baseline. Public and private capital grow as bar towers, a dashed ghost bar tracks the no-public-investment counterfactual, and a pannable, zoomable strip chart lets you scrub through the whole run to see which channel is winning at any point in time.

economicsinfrastructurepublic investmentcrowding outfiscal policymacroeconomics

2D · HTML5 Canvas 2D · 60 FPS target · runs fully client-side, no install