Die Arbeit untersucht die bestehenden Budgetregeln in Deutschland und stellt zwei aktuelle Reformvorschläge vor, die Schweizer Schuldenbremse und die Schuldenschranke des Sachverständigenrats. Investitionen nach dem Haushaltsrecht werden mit dem Nettoinvestitionsbegriff verglichen und auf ihre...

Uncertainty about the future preferences of the government may induce policy makers to run excessive budget deficits. As a solution to this problem, economists have proposed to impose a binding debt rule. In this paper we argue that a binding debt rule does not eliminate the distortions due to...

The study of the impact of public investment on poverty is currently of particular importance due to, among other factors, the commitments that several countries have acquired in the framework of the Millennium Development Goals and the current political situation which gives a more prominent...

This paper tries to explain the declining level of public investment in OECD countries. The theoretical framework hints to the relevance of a number of demand and supply factors – ranging from the yield of public investment to institutions like the EU deficit limits. The econometric results...

This paper evaluates optimal public investment and fiscal policy for countries characterized by limited tax and debt capacities. We study a non stochastic CRS endogenous growth model where public expenditure is an input in the production process, in countries where distortions and limited...

Despite intense calls for safeguarding public investment in Europe, public investment expenditure, when measured in relation to GDP, has steadily fallen in the last three decades, evoking fears that economic activity may be correspondingly negatively affected. At the same time, however, public...

Using annual data from 14 European Union countries, plus Canada, Japan and the United States, we evaluate the macroeconomic effects of public and private investment through VAR analysis. From impulse response functions, we are able to assess the extent of crowding-in or crowding-out of both...