We introduce a new suite of macroeconomic models that extend and complement the Debt, Investment, and Growth (DIG …'s properties by analyzing the growth, debt, and distributional consequences of big-push public investment programs with different … mixes of investment in human capital and infrastructure. We show that investment in human capital is much more effective …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store … leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical … evidence shows a nonlinear relationship between investment and saving and that investment is a hump-shaped function of the …

This paper studies the effect of demographic change on national saving, global interest rates, and international … private and public saving behavior. We then extend this framework to a two-country setting and simulate scenarios of …

reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

Now close to 50 percent of GDP, this paper assesses the appropriateness of China's current investment levels. It finds …, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by …, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against …

many countries. Using India as an illustration, this paper shows how a mix of well-designed taxation and spending policies …