Publication:
Revisiting Public Investment Multipliers: Nonlinear Effects of the Business Cycle, Fiscal Space, Efficiency, and Capital Stock

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dc.contributor.authorAdarov, Amat
dc.contributor.authorClements, Benedict
dc.contributor.authorJalles, João Tovar
dc.date.accessioned2024-10-24T17:44:01Z
dc.date.available2024-10-24T17:44:01Z
dc.date.issued2024-10-24
dc.description.abstractThe paper examines the macroeconomic effects of public investment in emerging market and developing economies. To this end, the analysis develops a new measure of public investment shocks based on cyclically adjusted government investment. Estimations using local projections based on a large sample of 129 countries over 1980–2019 suggest that public investment can significantly boost economic growth: an increase in public investment by 1 percent of gross domestic product raises output by 1.1 percent after five years, on average. However, the effects are much larger when public investment spending is efficient and fiscal space is ample—reaching up to 1.6 percent over the same period. Public investment multipliers tend to be larger during recessions and in capital-scarce economies. The paper also finds that public investment can crowd in private investment, as well as boost productivity and potential output.en
dc.identifierhttp://documents.worldbank.org/curated/en/099719510222432022/IDU1fd4bd390139da14d001b6c910c4f56d49874
dc.identifier.doi10.1596/1813-9450-10954
dc.identifier.urihttps://hdl.handle.net/10986/42293
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10954
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFISCAL MULTIPLIERS
dc.subjectPUBLIC INVESTMENT
dc.subjectGROSS FIXED CAPITAL FORMATION
dc.subjectLOCAL PROJECTIONS
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectPEACE, JUSTICE AND STRONG INSTITUTIONS
dc.subjectSDG 16
dc.titleRevisiting Public Investment Multipliersen
dc.title.subtitleNonlinear Effects of the Business Cycle, Fiscal Space, Efficiency, and Capital Stocken
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleRevisiting Public Investment Multipliers: Nonlinear Effects of the Business Cycle, Fiscal Space, Efficiency, and Capital Stock
okr.date.disclosure2024-10-24
okr.date.lastmodified2024-10-22T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099719510222432022/IDU1fd4bd390139da14d001b6c910c4f56d49874
okr.guid099719510222432022
okr.identifier.docmidIDU-fd4bd390-39da-4d00-b6c9-0c4f56d49874
okr.identifier.doi10.1596/1813-9450-10954
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10954
okr.identifier.externaldocumentum34409485
okr.identifier.internaldocumentum34409485
okr.identifier.reportWPS10954
okr.import.id5550
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099719510222432022/pdf/IDU1fd4bd390139da14d001b6c910c4f56d49874.pdfen
okr.region.geographicalWorld
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Economic Policy,Green Growth,Public Finance Management,Economic Growth and Planning,Fiscal Policy,Domestic Revenue Administration,Public Sector Management,Fiscal sustainability,Urban and Rural Development,Macroeconomic & Structural Policy Modelling,Disaster Risk Management
okr.topicGovernance::Governance and the Financial Sector
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.unitProspects Group (DECPG)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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