On the Long-term Economic and Budgetary Effects of Public-Sector Investment
AbstractIn this work we use a VAR/ECM approach to determine the effects of aggregated public investment on output, employment and private investment for five EU countries. Based on impulse-response functions associated to the estimated VAR, we obtain long-term accumulated elasticities, long-term marginal productivities and annual rates of return, allowing for an economy performance analysis. Based on our results, we can conclude that, generally, the aggregated public investment crowds in output, employment and private investment, and it can be considered a useful tool in growth in the long run.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p146.
Date of creation: Aug 2005
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-MAC-2006-02-05 (Macroeconomics)
- NEP-PBE-2006-02-05 (Public Economics)
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