HomeEconomics & Social SystemsInfrastructure Investment: Crowding-In vs Crowding-Out

Infrastructure Investment: Crowding-In vs Crowding-Out

Interactive 3D 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 it would have been.

Economics & Social Systems3DModerate60 FPS📱 Mobile-adapted
economics-topic-36 ↗ Open standalone

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 simulator runs both channels side by side in real time: a public-capital tower and a private-capital tower grow block by block from a shared macro model, a translucent ghost tower shows what the private sector would have accumulated with zero public investment, and four sliders let you tune the size of the infrastructure program and the relative strength of each channel to see which one wins.

⚙ Under the hood

A 3D 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.

economicsinfrastructurepublic investmentcrowding outfiscal policymacroeconomics

3D · Three.js / WebGL renderer · 60 FPS target · runs fully client-side, no install

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