The effect of public investment on economic growth is a crucial public policy issue. Empirical research into this … question was stimulated by Aschauer (1989), who suggested that public capital has a powerful impact on the productivity of … determining the robustness of his position. The present paper analyses the way in which public investment and fiscal policy …

welfare and private capital in equilibrium, conditional on the investment of funds in public capital. In the long-run, not … only does debt improve efficiency by raising the returns to private investment when equilibrium is inefficient, it also … investment was positively related to welfare at lower levels of debt-GDP ratio. The effect arises from a marginal product premium …

intertemporal trade-off. Because investment in education affects labor productivity with a long lag, it takes 15+ years before net …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 …

goods, and an export demand function. The model exhibits the three-way interaction between public and private investment and … trade shown recently in the empirical literature. A parameter for government-investment inefficiency has transitional growth … effects distorting between public investment and private capital, consumption, and exports, the latter biasing the terms of …