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The Political Economy of Public Investment and Public Finance: Structural and Institutional Regulations

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  • Jamee K. Moudud
  • Francisco Martinez-Hernadez
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    Abstract

    From the spurring of productivity and the incubation of new technologies to its role in the maintenance of the safety and security of citizens, public investment is widely recognized to play a central role in the long-term economic and social development of society. This article will discuss the structural and institutional determinants of the financing of public investment, its evolution during the post-World War II period and its challenges faced in the current economic crisis. The discussion will revolve around the empirical fact, observed for a number of countries over fairly wide time periods, of a long-run co-trended relationship between public savings and public investment.

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    File URL: http://www.researchonmoneyandfinance.org/media/papers/RMF-26-Moudud-Martinez-Hernandez.pdf
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    Bibliographic Info

    Paper provided by Research on Money and Finance in its series Discussion Papers with number 26.

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    Date of creation: 2011
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    Handle: RePEc:rmf:dpaper:26

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    Web page: http://www.researchonmoneyandfinance.org/

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