This study investigates the politico-economic determinants of the crowding-in effects of public investments in a cross-section of 25 developing countries for the 1975-2000 period using multivariate probit analysis. The estimation results show that public fixed capital investments may crowd in...

Bajo-Rubio O. and Diaz-Roldan C. (2005) Optimal endowments of public capital: an empirical analysis for the Spanish regions, Regional Studies 39 , 297-304. Regional infrastructure policies, through increased public investment, are widely used to promote the development of poorer regions in...

The paper presents a theoretical analysis of the relationship between privatization and public deficit finance. We examine the optimal magnitude of public asset sales and the extent to which privatization can be used to reduce taxes, or, to retire public debt, for two cases. In the first,...

The relationship between public investment and economic is one of the most highly debated issues in economic policy circles in recent years. This topic has been analyzed from several approaches, both from a theoretical and empirical perspective. In this paper we present a survey of the main...

Standard introductory textbook authors assert that an increase in government spending expands aggregate demand in the short run but also raises the interest rate and, thus, crowds out private investment in the long run. Because the decrease in investment results in a smaller capital stock,...

This paper aims at analyzing theoretically and empirically the role of infrastructure expenditure on economic growth in Brazil from 1986 to 2003. The hypothesis is that public infrastructure expenditures in transport are central to foster sustainable growth in Brazil. Theoretical and empirical...

We take stock of what is known about public investment in the member states of the European Union, old and new alike. The interesting features about the long-term evolution of public investment have been its downtrend in old EU member states, bar the cohesion countries, and its volatility in new...

This paper focuses on the trade-off faced by governments in deciding the allocation of public expenditures between productivity-enhancing public infrastructures and utility-enhancing public consumption in a two-country model. The results show that a permanent increase in the domestic stock of...

An issue of major concern to politicians and policy-makers around the world today is whether transport infrastructure investments, such as those in roads and airports, generate enough economic benefits to justify their very large price tag. Beginning in the mid 1970s, nearly all OECD countries...

In this paper we use a vector autoregressive approach to analyze the effects of infrastructure investment on economic performance using a newly developed data set for Portugal. We find that investments in other transportation infrastructures – railroads, ports and airports – and social...