the recent historical value of less that 0.5% of GDP. Subtracting net public sector investment from the conventional … budget deficit is likely to overstate the government revenue producing potential of public sector investment. Public debt …

This paper explores the implications of public investment for macroeconomic performance within a simple two …-period policymaking model. We show that under the balanced-budget rule, the contribution of public investment to future output plays a key … expenditures, the attractiveness of public investment crucially depends on the return from capital spending relative to the cost of …

, the government contributes directly to factor accumulation through public investment in infrastructure and other assets …. Second, public expenditure tends to crowd out private investment by reducing disposable income and the incentive to save …

This paper analyses the determinants of public expenditures allocated to investment. We perform welfare analysis in an … overlapping generations model with public consumption, public investment, debt and taxes. The optimal public investment share … depends positively on the productive contribution of public investment, and negatively on the preference for public …