Alfredo Marvão Pereira, Department of Economics, College William & Mary, Williamsburg, USA, Maria de Fátima Pinho, Instituto Superior de Contabilidade e Administração de Aveiro, Aveiro, Portugal, José da Silva Costa, Faculdade de Economia da Universidade do Porto, Porto, Portugal
On the Long-term Economic and Budgetary Effects of Public-Sector Investment (assigned to theme
In this work we use a VAR/ECM approach to determine the effects of aggregated public investment on output, employment and private investment for five EU countries. Based on impulse-response functions associated to the estimated VAR, we obtain long-term accumulated elasticities, long-term marginal productivities and annual rates of return, allowing for an economy performance analysis. Based on our results, we can conclude that, generally, the aggregated public investment crowds in output, employment and private investment, and it can be considered a useful tool in growth in the long run.
submitted 2005-04-29 09:18:55.967
final paper
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(copyright Gunther Maier) |