The dynamics of public investment: A theoretical and empirical investigation

Authors
Publication date 1999
Series Tinbergen Institute Discussion Paper, TI 1999-087/2
Publisher Amsterdam / Rotterdam: Tinbergen Institute
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract I study both theoretically and empirically the response of the economy tochanges in public investment and the energy price. Theoretically, the responseis dynamic because the stock of public capital has to be built up and becausefirms smooth their investments. I develop a VAR model for the Dutch economy, andshow that output, private investment and employment respond dynamically toexogenous changes in public investment and the price of energy.
Document type Working paper
Language English
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