This paper quantitatively assesses the macroeconomic effects of the recently agreed U.S. bipartisan infrastructure spending bill in a neoclassical growth model. We add to the literature by considering a more detailed tax structure, different types of infrastructure spending and linkages between...

The new German government plans to increase investment spending considerably, yet without increasing taxes or reforming the debt brake enshrined in the constitution. This article explores the government’s (un)conventional approaches to squaring this circle.

In the coalition agreement, the new federal government holds out the prospect of a “decade of investment for the future”. It thus recognises that considerable additional investment-related government spending is necessary to overcome the investment backlog in Germany and promote the...

The concept of the "quality of public finances" (QPF) covers many qualitative and structural issues of fiscal policy. This chapter traces the origins of the concept of QPF to the Lisbon Strategy and the subsequent EPC Working Group on "Quality of Public Finances" (2004‐2007). At its core, the...

Der Wirtschaftsstabilisierungsfonds (WSF) ist eines von mehreren staatlichen Unterstützungsinstrumenten, die zur Bekämpfung der Folgen der Coronakrise aufgelegt wurden. Der WSF wurde für Unternehmen mit besonderer (volks-)wirtschaftlicher Bedeutung konzipiert. Dabei verfügt der Fonds über...

Knowledge gaps remain as to how longer-term public investments (PI) such as agricultural research and development (R&D), and short-term interventions through other public expenditures in agriculture (PEA) complement each other in enhancing productivity and efficiency in the agrifood sector. This...

A number of studies have suggested a quantitatively important relationship between public-sector capital accumulation and private sector productivity, with the most compelling evidence derived from analyses of state-level data. Estimates herein of production functions that use standard...

This paper incorporates the notion of public capital in a Blanchard OLG model to study the effects of debt-financed public investments on growth and welfare in the long-run. The simple analytic result is that public debt can enhance both welfare and private capital in equilibrium, conditional on...

To build our Republic back better we must build our banks better. The overwhelmingly greater part of our investment capital is now publicly generated yet privately managed. But pervasive and still underappreciated recursive collective action predicaments endemic to all exchange economies,...

Fiscal foresight has recently received much attention in the literature. In this context, this study examines whether stock returns of the construction industry can forecast public investment in Japan. In the forecasting exercise, the VAR model with mixed-frequency data sampling regression is...

We document that Italian public administrations systematically overestimate capital expenditures, and that the introduction of a cap on this spending item improves the accuracy of their plans. Our analysis relies on a unique dataset including budgetary figures (both planned and realized) for all...

This paper presents a neoclassical model of international capital flows, public investment, and economic growth. Because public capital is non-traded and is imperfectly substitutable for private capital, the open economy converges only gradually to the Solow steady-state notwithstanding the fact...

This study used the Bayesian methodology to estimate and calibrate a small-scale DSGE model of the Philippines. The goal of this study was to review the risk associated with increases in sovereign deficits. The major results of the study are: Estimates of fiscal rules show that fiscal authority...

On March 23, 2009, the U.S. Treasury, in conjunction with the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC), announced the Public-Private Investment Program (PPIP). PPIP consisted of two complementary programs designed to foster liquidity in the market for certain...

The returns from public investment, especially during periods of scaling up, are often lower than expected. To understand the mechanisms behind this regularity we exploit original information on investment projects obtained from World Bank project reports to document the extent and the drivers...

This paper upholds the classical Keynesian position that a laissez-faire market economy lacks a spontaneous tendency to full employment. Focusing on the UK case, it argues that monetary policy could not prevent the economic collapse of 2008-9 or achieve full recovery from the Great Recession...

Public investment has shown increasing trends both in nominal and as a share of GDP over years in Ethiopia. These upsurges in public investment are believed to be due to factors that have visible impact on the fiscal posture of the country. To investigate the validity of Wagner's law in Ethiopia;...

Der Wirtschaftseinbruch bedingt durch die Corona-Pandemie trifft in Deutschland auf einen Strukturwandel, der speziell durch die notwendige Digitalisierung und Dekarbonisierung sowie den demografi schen Wandel getrieben ist. Einerseits wird kurzfristig durch das CoronaKonjunkturpaket und den...

We investigate the relation between existing fiscal rules and investments in the context of a fiscal crisis in Brazil. We analyze existing fiscal rules at national and subnational levels, their enforcement, and proposed alternatives. Using narrative analysis, case studies, interviews, empirical...

This paper presents the framework and methodology for the economic valuation of the knowledge-based economy in five Latin American (LA) countries, namely Costa Rica, El Salvador, Mexico, Peru and the Dominican Republic, for which a new database (IDB-Ivie, 2020) has recently been released. It...

This paper reviews the design and operation of the Chilean fiscal rule in the past 30 years. Using different empirical approaches, we assess its impact on fiscal procyclicality, public debt, and public investment. While there has been substantial progress in building a modern institutional...

This paper analyzes the implementation of Fiscal Rules (FR) in Argentina. Several clear attempts to establish a FR at the national level are identified. The analysis suggests that the environment matters. The only FR that was binding in the period was approved in 2004 during an economic boom,...

This article has three goals. First, it describes the genesis of fiscal rules in Peru and its degree of compliance. Second, it estimates the effect of fiscal rules adoption on public investment. Last, it analyzes the impact of alternative fiscal rules on public investment and public debt...

Öffentliche Investitionen stehen ganz oben auf der wirtschaftspolitischen Agenda in Deutschland. Simulationen mit dem makroökonomischen Mehrländermodell NiGEM zeigen, dass sich ein großes, 460 Mrd. Euro umfassendes, kreditfinanziertes Investitionsprogramm nach spätestens 30 Jahren selbst...

In der Septemberausgabe 2020 veröffentlichte der Wirtschaftsdienst einen Aufsatz mit dem Titel „Bremst die Doppik öffentliche Investitionen? Ergebnisse aus drei aktuellen Evaluationsstudien“ von Désirée Christofzik, Florian Dorn, Stefanie Gäbler, Christian Raffer und Felix Rösel....

The paper aims to analyze the impact of public investments generated by implementing the Emerging Senegal Plan (ESP) on economic growth and gender inequalities observed in the labor market in Senegal. A dynamic computable general equilibrium modeling was carried out for this purpose using a...