This paper examines the relationship among deficit-financing fiscal policy, risk and economic growth in a stochastic endogenous growth model with private and public capital. We show that there are positive balanced-growth rate and a debt-to-GDP ratio that depend on deep parameters such as the...

This paper presents and analyzes an endogenous growth model with public capital and progressive taxation. Two versions are considered: The first version assumes that the budget of the government is balanced at each point of time. The second allows for public debt but asserts that the ratio of...

Im Beitrag wird gezeigt, dass die Kreditfinanzierung öffentlicher Investitionen mittel- und langfristig den Nachteil hoher, am Marktzins orientierter Opportunitätskosten aufweist. Im Rahmen der Steuerfinanzierung konvergieren die Opportunitätskosten öffentlicher Investitionen gegen einen...

Evaluations of new infrastructure in developing countries typically focus on direct effects, such as the impact of an electrifification program on household energy use. But if new infrastructure induces people to move into an area, other local publicly provided goods may become congested,...

The direct benefits of infrastructure in developing countries can be large, but if new infrastructure induces in-migration, congestion of other local publicly provided goods may offset the direct benefits. Using the example of rural household electrification in South Africa, we demonstrate the...

Ethnic favoritism is seen as antithetical to development. This paper provides credible quantification of the extent of ethnic favoritism using data on road building in Kenyan districts across the 1963-2011 period. Guided by a model it then examines whether the transition in and out of democracy...

Using the price differences between two markets, this study proposes a method for inferring the social return to transport infrastructure (in the vein of Fogel (1964)). We apply this approach to an investment that increased the shipping capacity of a thousand-mile-long railroad in western China....

This paper analyses the Policy-Making Process (PMP) of transport infrastructure projects in Colombia for the period 2002-10. It aims to identify the main bottlenecks to improve the implementation of public policies in the main phases of the transport infrastructure policy cycle, namely planning,...

Urbanisation in China has long been held back by various restrictions on land and internal migration but has taken off since the 1990s, as these impediments started to be gradually relaxed. People have moved in large numbers to richer cities, where productivity is higher and has increased...

Recalling the centrality of transport infrastructure in any development strategy and economic recovery and resilience plan, the paper stresses the importance of increasing territorial connectivity in Colombia to sustain future progress. It describes the variety of financing models for transport...