Some Misconceptions about Public Investment Efficiency and Growth

This study reconsiders the macroeconomic implications of public investment efficiency,

Abstract

The authors reconsider the macroeconomic implications of public investment efficiency, defined as the ratio between the actual increment to public capital and the amount spent. They show that, in a simple and standard model, increases in public investment spending in inefficient countries do not have a lower impact on growth than in efficient countries, a result confirmed in a simple cross-country regression.

This work is part of the ‘Macroeconomics in Low-income countries’ programme

Citation

Andrew Berg, Edward F Buffie, Catherine A Pattillo, Rafael Portillo, Andrea Presbitero, Luis-Felipe Zanna (2016) Some Misconceptions about Public Investment Efficiency and Growth Working Paper No. 15/272

Some Misconceptions about Public Investment Efficiency and Growth

Updates to this page

Published 23 December 2015