In this note we show that the claim from Chen et al (2005) that their model generates an endogenous markup is incorrect. This is not only a nomenclature issue: using the �fixed markup which we show to be the only one consistent with the structure of the model implies the main conclusions in...

The relationship between public investment and economic is one of the most highly debated issues in economic policy circles in recent years. This topic has been analyzed from several approaches, both from a theoretical and empirical perspective. In this paper we present a survey of the main...

Führt eine private Finanzierung von Infrastrukturprojekten zu größerer Wirtschaftlichkeit, oder ist dies nur eine Umgehung der Schuldenbremse? Für Alfons Weichenrieder, Universität Frankfurt, liegt der Verdacht nahe – so ökonomisch sinnvoll im Einzelfall der Einsatz eines Public Private...

Most studies on private investment focus either on macroeconomic conditions or sociopolitical climate to explain private investment patterns. We go a step further and examine empirically the joint effect of macroeconomic uncertainty, sociopolitical instability and public provision on private...

Most parts of the Euro area have seen seven years of deep economic crisis. The strategy of tightening the fiscal constraints of the SGP has driven many member states into austerity. In contrast, the golden rule of public investment proposed in this study would be one important element of the...

This paper examines the relationship between fiscal policy and regional business cycle fluctuations in Japan. In particular, we focus on the effects of “discretionary” changes in public investment, a portion of investment unrelated to the current state of macroeconomic circumstances. The...

In Ergänzung zu den Beiträgen im ifo Schnelldienst 22/2014 führt Steffen Kampeter, Bundesministerium der Finanzen, aus, dass bei entsprechenden Rahmenbedingungen die Mobilisierung privaten Kapitals für öffentliche Projekte sowohl für die öffentliche Hand als auch für die privaten...

This paper aims at analysing the methodology used for financing large infrastructure projects in Italy. In particular, it focuses on the Italian highway sector, where in the last years many projects have been launched using new financial instruments. The paper discusses three of these...

We estimate the multiplier relying on differences in spending in infrastructure across Italian provinces and an instrument identifying investment changes that are large and exogenous to local cyclical conditions. We derive our instrument from the Law mandating the interruption of public work on...