UID:
edocfu_9958079775702883
Format:
1 online resource (32 p.)
ISBN:
1-4623-2041-4
,
1-4552-8194-8
,
1-283-56287-1
,
1-4552-0987-2
,
9786613875327
Series Statement:
IMF working papers ; WP/10/229
Content:
Effects of government investment are studied in an estimated neoclassical growth model. The analysis focuses on two dimensions that are critical for understanding government investment as a fiscal stimulus: implementation delays for building public capital and expected fiscal adjustments to deficit-financed spending. Implementation delays can produce small or even negative labor and output responses to increases in government investment in the short run. Anticipated fiscal adjustments matter both quantitatively and qualitatively for long-run growth effects. When public capital is insufficiently productive, distorting financing can make government investment contractionary at longer horizons.
Note:
"October 2010."
,
CONTENTS; I. Introduction; II. The Model; A. Households; B. Firms; C. Government; 1. Modeling the spending process; 2. Debt Financing; III. Estimation and Calibration; A. Estimation; B. Calibrated Parameters; 1. Productivity of public capital; 2. Spending rates; IV. Impacts of Government Investment; A. Implementation Delays; B. Fiscal Adjustments; 1. Financing method; 2. Financing speed; V. Present-Value Multipliers; VI. Concluding Remarks; Tables; 1. Cost estimation by the Congressional Budget Office.; 2. Prior and posterior distributions for the estimated parameters
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3. Present-value cumulative multipliers for an increase in government investment: mean and 90-percent intervals4. Present-value mean output multipliers at various horizons: mean and 90- percent intervals.; Figures; 1. Impulse responses to higher government investment under various lengths of implementation delays; 2. Impulse responses to an increase in government investment under various financing methods; 3. Impulse responses to an increase in government investment under different fiscal adjustment speeds; VII. Appendix A; VIII. References
,
English
Additional Edition:
ISBN 1-4552-0894-9
Language:
English
