HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Conference papers

Estimating the Impact of Public Investment for the United Kingdom: Has the Golden Rule of Public Finance Made a Difference?

Abstract : This paper uses a SVAR methodology to investigate the effects of public investment on growth, and more specifically, the effects of the introduction of a golden rule. We extend the existing literature by estimating a model of the British economy that takes into account long run factors. This seems necessary when dealing with a multi annual variable like public investment, and its long term effects on public finances through debt accumulation. We find that in such a long run framework investment has significant and permanent positive effects on GDP growth; this result runs counter to most recent literature on the topic, that was limited to a short run specification. We further find, by comparing different subsamples, that the introduction of the golden rule in 1997 strengthened this positive effect of public investment.
Document type :
Conference papers
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03462186
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Wednesday, December 1, 2021 - 4:38:39 PM
Last modification on : Saturday, May 14, 2022 - 3:29:23 AM

Licence


Distributed under a Creative Commons Attribution - NonCommercial - ShareAlike 4.0 International License

Identifiers

  • HAL Id : hal-03462186, version 1
  • SCIENCESPO : 2441/2681

Collections

Citation

Jérôme Creel, Paola Monperrus-Veroni, Francesco Saraceno. Estimating the Impact of Public Investment for the United Kingdom: Has the Golden Rule of Public Finance Made a Difference?. Banca d’Italia workshop on Fiscal Indicators, Banca d’Italia, Mar 2006, Perugia, Italy. pp.373 - 402. ⟨hal-03462186⟩

Share

Metrics

Record views

0

Files downloads

0