IDEAS home Printed from https://ideas.repec.org/a/euf/pfremu/pfr-2017-02.html
   My bibliography  Save this article

Government investment in the EU: the role of institutional factors

Author

Listed:
  • Francisco Barros Castro
  • Alessandra Cepparulo
  • Lea Degorre
  • Luis Garcia Lombardero
  • Michael Grams
  • Lucia Granelli
  • Laszlo Jankovics
  • Robert Kraemer
  • Christoph Maier
  • Maria Maierean
  • Philipp Mohl
  • Leire Ormaetxea Igarzabal
  • Aurelien Poissonnier
  • Mona Papadakou
  • Stefano Santacroce
  • Edouard Turkisch
  • Caroline Vandierendonck
  • Peter Voigt

Abstract

This part of the European Commission's report on public finances in EMU 2017 analyses the main drivers of government investment in the European Union. It puts a special emphasis on the role of institutional factors, such as the institutional arrangements across levels of government, the quality of governance and national fiscal rules. The main findings are threefold. First, governance quality is a key element to improve the value for money of public investment. This is the case both at the national and the sub-national level in all Member States analysed. Second, sub-national governments are at the forefront of public investment. Local governance, institutional arrangements and coordination across levels of governance are therefore key elements for the proper provision of public investment. Third, a sound institutional setup can support public investment. Strengthened fiscal rules can mitigate the depressionary effect of public debt on public investment.

Suggested Citation

  • Francisco Barros Castro & Alessandra Cepparulo & Lea Degorre & Luis Garcia Lombardero & Michael Grams & Lucia Granelli & Laszlo Jankovics & Robert Kraemer & Christoph Maier & Maria Maierean & Philipp , 2018. "Government investment in the EU: the role of institutional factors," Report on Public Finances in EMU, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, pages 132-132, January.
  • Handle: RePEc:euf:pfremu:pfr-2017-02
    as

    Download full text from publisher

    File URL: https://ec.europa.eu/info/sites/info/files/economy-finance/ip069_iv_government_investment_in_the_eu.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:pfremu:pfr-2017-02. 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: . General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.