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increases in government spending have a strong negative effect on investment spending …
Persistent link: https://www.econbiz.de/10012471521
This paper evaluates the effects of fiscal policy on investment using a panel of OECD countries. In particular, we … investigate how different types of fiscal policy affect profits and , as a result, investment. We find a sizable negative effect … of public spending -- and in particular of its public wage component -- on business investment. This result is consistent …
Persistent link: https://www.econbiz.de/10012471581
consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private …
Persistent link: https://www.econbiz.de/10012478874
worked as well as declines in real wages. The shocks are also associated with short lived rises in aggregate investment and … the qualitative effects of a fiscal shock. Once we allow for habit formation and investment adjustment costs, the model …
Persistent link: https://www.econbiz.de/10012468924
In earlier work we documented two episodes in which a sharp fiscal consolidation was associated with a very large expansions in private domestic demand. In this paper we draw on further evidence to investigate if and when fiscal policy changes can have such non-Keynesian effects. In the first...
Persistent link: https://www.econbiz.de/10012473537
technology of private investment. Government policies that discourage saving might make the Schumpeterian vision of a shift from …
Persistent link: https://www.econbiz.de/10012474022
This paper analyzes the effects of changes in government expenditures on both a domestically produced and an imported good in an open economy based on intertemporal optimizing behavior. The dynamic adjustment is characterized in detail and the critical role played by the accumulating capital...
Persistent link: https://www.econbiz.de/10012475538
capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also …
Persistent link: https://www.econbiz.de/10012459478
The finding of Feldstein and Horioka (1980) that countriesf investment rates are highly correlated with their national … and investment in a sample that includes not only 14 industrialized countries, but also 50 developing countries. The paper … developing countries, and higher after 1973 than before. Our interpretation of the saving-investment evidence is that the …
Persistent link: https://www.econbiz.de/10012477026
environmental returns. Examination of every equity investment made by the International Finance Corporation, one of the largest and … markets, and a core thesis of impact investing that some eligible markets do not receive sufficient investment capital …
Persistent link: https://www.econbiz.de/10012481174