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The impact of public investment in Sweden: A VAR approach

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  • Brinca, Pedro

Abstract

The traditional approach towards analyzing the impact of public investment has been through including public capital as a third input factor in a Solow-model production function. Nonetheless, such approach implies several problems both at the theoretical and empirical level. Given such problems, econometric models that require as few theoretic assumptions as possible become important. It is in this framework that the Vector Autoregressive model is introduced and explained. An application to the Swedish economy is consequently conduced as it is interesting to verify the impact of public investment in a country known for its comparably large public sector.

Suggested Citation

  • Brinca, Pedro, 2006. "The impact of public investment in Sweden: A VAR approach," MPRA Paper 62132, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62132
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    References listed on IDEAS

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    Cited by:

    1. Pfammatter, Andrea Corina, 2015. "Do differences in international labor mobility lead to differences in the fiscal multiplier? A theoretical approach," MPRA Paper 68955, University Library of Munich, Germany.
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    3. Eduardo de Sá Fortes Leitão Rodrigues, 2020. "Uncertainty And The Effectiveness Of Fiscal Policy In The United States And Brazil: Svar Approach," Working Papers REM 2020/0150, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    4. Eduardo de Sa Fortes Leitao Rodrigues, 2023. "Uncertainty and the effectiveness of fiscal policy in the United States and Brasil: SVAR Approach," Working Papers 2023.03, International Network for Economic Research - INFER.

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    More about this item

    Keywords

    Public investment; VAR; Sweden; Fiscal Multipliers;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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