Inversión pública óptima en un modelo de ciclo real

The aim of this paper is to analyze the optimal fiscal policy problem including public investment as an endogenous decision. We set a general equilibrium model, calibrated with Spanish data, where the public capital stock is an additional input. We obtain that the Spanish public investment/output ratio is slightly below the optimal level. The result depends crucially on the calibrated value for the public capital elasticity. Optimal properties obtained for the fiscal variables include a highly persistent labor income tax rate, moderately countercyclical and hardly volatile, whereas the tax rate on capital income is acyclical, less persistent and very volatile. Public investment tends to be procyclical and moderately persistent. (Copyright: Fundación Empresa Pública)