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What would government measures to boost the economy cost?

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  • Wolfgang Meister

Abstract

To revive demand, federal and state governments could make use of granting an investment premium of 7.5% for private investors. Using only the net investment of a firm as a measurement, an investment premium in 2002 would cost about DM 10.5 billion. This would be about 0.25% of GDP. This would mean that the budget deficit at nearly 2.6% would still be below the Maastricht criteria.

Suggested Citation

  • Wolfgang Meister, 2001. "What would government measures to boost the economy cost?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(22), pages 45-46, December.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:22:p:45-46
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    References listed on IDEAS

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    1. Corporate author, 2001. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2001," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 68(43), pages 661-708.
    2. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2001. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2001," Wirtschaft im Wandel, Halle Institute for Economic Research (IWH), vol. 7(14), pages 330-383.
    3. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2001. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Frühjahr 2001," HWWA Reports 207, Hamburg Institute of International Economics (HWWA).
    4. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2001. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2001," HWWA Reports 211, Hamburg Institute of International Economics (HWWA).
    5. Unknown, 2001. "Die Lage der Weltwirtschaft und der deutschen Wirtschaft im Herbst 2001," Report Series 26110, Hamburg Institute of International Economics.
    6. Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute, 2001. "The State of the World Economy and the Germany Economy in Autumn 2001," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(20), pages 03-43, November.
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    More about this item

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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