The effects of public investment smoothing as a stimulus measure on construction industry in Japan
AbstractUsing Japanese macroeconomic data over 1980:Q1-2010:Q1, we estimate their time-varying seasonal components and investigate the impact of public investment smoothing on the construction industry. It is shown that the seasonal fluctuations of public investment had faded away after the collapse of the bubble economy in the early 1990s, and they are positively correlated to the seasonal fluctuations of production in the construction industry. Moreover, it is suggested that the seasonal fluctuations of public investment affect the seasonal patterns of production in the construction industry through the adjustment of the cash earnings and employees. These findings imply that public investment smoothing can be effective for decreasing the implementation lag of fiscal policy and thereby for fine-tuning.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 3 ()
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public investment smoothing; implementation lag;
Find related papers by JEL classification:
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- H5 - Public Economics - - National Government Expenditures and Related Policies
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