Advanced Search
MyIDEAS: Login to save this article or follow this journal

On the Effects of Public Investment on Private Investment: What Crowds in What?

Contents:

Author Info

  • Alfredo M. Pereira

    (The College of William and Mary)

Abstract

This article provides an empirical investigation of the effects of public investment on the evolution of private investment in the United States. It is based on the impulse response analysis associated with vector auto-regressive (VAR) estimates. The empirical results suggest that at the aggregate level, public investment crowds in private investment. Disaggregating private investment shows that the crowding-in effect of public investment is strong for equipment and only marginal for structures. This crowding-in effect on private equipment is particularly strong in the cases of industrial equipment and transportation equipment. In fact, public investment marginally crowds out private investment in information equipment. A final look at the effects of different types of public investment on the different types of private investment suggests that in about one third of the cases, public investment variables crowd out private sector variables. More important, the aggregate results often hide a wide diversity of effects.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://pfr.sagepub.com/content/29/1/3.abstract
Download Restriction: no

Bibliographic Info

Article provided by in its journal Public Finance Review.

Volume (Year): 29 (2001)
Issue (Month): 1 (January)
Pages: 3-25

as in new window
Handle: RePEc:sae:pubfin:v:29:y:2001:i:1:p:3-25

Contact details of provider:

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Christophe Kamps, 2004. "The Dynamic Effects of Public Capital: VAR Evidence for 22 OECD Countries," Kiel Working Papers 1224, Kiel Institute for the World Economy.
  2. repec:rom:campco:v:7:y:2011:i:1:p:356-364 is not listed on IDEAS
  3. Romp, Ward & de Haan, Jakob, 2005. "Public capital and economic growth: a critical survey," EIB Papers 2/2005, European Investment Bank, Economics Department.
  4. Muyambiri, Brian & Chiwira, Oscar & Enowbi Batuo, Michael & Chiranga, Ngonidzashe, 2010. "The Causal Relationship between Private and Public Investment in Zimbabwe," MPRA Paper 26671, University Library of Munich, Germany.
  5. Brown, Stephen P. A. & Hayes, Kathy J. & Taylor, Lori L., 2003. "State and Local Policy, Factor Markets, and Regional Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 33(1), pages 40-60.
  6. Torrisi, Gianpiero, 2009. "Public infrastructure: definition, classification and measurement issues," MPRA Paper 12990, University Library of Munich, Germany.
  7. Diogo Barbosa & Vitor M. Carvalho & Paulo J. Pereira, 2013. "The interaction between firms and Government in the context of investment decisions: a real options approach," FEP Working Papers 507, Universidade do Porto, Faculdade de Economia do Porto.
  8. A Badawi, 2003. "Private Capital Formation and Public Investment in Sudan: Testing the Substitutability and Complementarity Hypotheses in a Growth Framework," The School of Economics Discussion Paper Series 0316, Economics, The University of Manchester.
  9. Marius Samizafy, 2009. "Assessing the Leverage Effect of Public Debt in Albania and Serbia," Book Chapters, Institute of Economic Sciences.
  10. Torrisi, Gianpiero, 2009. "Infrastructures and economic performance: a critical comparison across four approaches," MPRA Paper 18688, University Library of Munich, Germany.
  11. Vitor Carvalho & Diogo Barbosa & Paulo Jorge Pereira, 2013. "The interaction between firms and Government in the context of investment decisions: a real options approach," EcoMod2013 5390, EcoMod.
  12. Yang Zou, 2006. "Empirical studies on the relationship between public and private investment and GDP growth," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1259-1270.
  13. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "The Macroeconomic Impact of Infrastructures: A Literature Review and Empirical Analysis on the Case of Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
  14. Marianna Belloc & Pietro Vertova, 2004. "How Does Public Investment Affect Economic Growth in HIPC? An Empirical Assessment," Department of Economics University of Siena 416, Department of Economics, University of Siena.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:29:y:2001:i:1:p:3-25. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.