Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Is Public Capital Productive in Europe?

Abstract : This paper addresses the issue of whether and by how much public investment or public capital can enhance economic performance. In comparison with the literature on the subject, we apply many different methodologies to answer these questions. A VAR model (for France, Italy, Germany, the UK and the USA), a panel composed of 6 European countries (Austria, Belgium, France, Germany, Italy and the Netherlands) and a regional panel (French regions) are therefore estimated. Public investment is shown to be a significant determinant of output; this is also true for public capital but to a lesser extent than public investment with a VAR methodology. The size of the estimated coefficient is also more realistic than those obtained in the literature. This empirical result confirms that the focus of some economists on safeguarding the level of public investment is not misplaced. The debate on the introduction of a “golden rule of public finance” in EMU is legitimate.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03607615
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Monday, March 14, 2022 - 10:05:14 AM
Last modification on : Friday, March 25, 2022 - 3:38:55 AM
Long-term archiving on: : Wednesday, June 15, 2022 - 6:22:42 PM

File

wp2006-10.pdf
Publisher files allowed on an open archive

Identifiers

  • HAL Id : hal-03607615, version 1
  • SCIENCESPO : 2441/963

Collections

Citation

Jérôme Creel, Gwenaelle Poilon. Is Public Capital Productive in Europe?. 2006. ⟨hal-03607615⟩

Share

Metrics

Record views

3

Files downloads

15