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Public and private investment rates of return: evidence for industrialized countries


  • Antonio Afonso
  • Miguel St. Aubyn


We compute the macroeconomic rates of return of public and private investment implicit in a VAR for 14 European Union countries, Canada, Japan and the United States. Results point mostly to positive effects of public and private investment on output, whereas public investment crowds out private investment in a significant number of countries.

Suggested Citation

  • Antonio Afonso & Miguel St. Aubyn, 2010. "Public and private investment rates of return: evidence for industrialized countries," Applied Economics Letters, Taylor & Francis Journals, vol. 17(9), pages 839-843.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:9:p:839-843 DOI: 10.1080/13504850802599425

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    Cited by:

    1. Mamedov, Arseny & Hudko, Hudko & Belev, Sergei & Moguchev, Nikita Sergeevich, 2016. "Comparative Analysis of the Effectiveness of Individual Instruments of State Investment Policy," Working Papers 3052, Russian Presidential Academy of National Economy and Public Administration.
    2. 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.
    3. Barbosa, Diogo & Carvalho, Vitor M. & Pereira, Paulo J., 2016. "Public stimulus for private investment: An extended real options model," Economic Modelling, Elsevier, vol. 52(PB), pages 742-748.
    4. Alfredo M. Pereira & Jorge M. Andraz, 2012. "On The Economic Effects Of Investment In Railroad Infrastructures In Portugal," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(2), pages 79-107, June.
    5. Hüseyin Şen & Ayşe Kaya, 2014. "Crowding-Out or Crowding-In? Analyzing the Effects of Government Spending on Private Investment in Turkey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(6), pages 617-630, December.
    6. Arthur J. Robson & Balázs Szentes, 2014. "A Biological Theory of Social Discounting," American Economic Review, American Economic Association, vol. 104(11), pages 3481-3497, November.
    7. António Afonso & Miguel St. Aubyn, 2016. "Economic Growth and Public and Private Investment Returns," Working Papers Department of Economics 2016/14, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

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