The primary objective of this article is to answer the following two research questions: has the growing public debt of state governments promoted increased public investment? If the answer is yes, then does any increase in public investment lead to more growth in the Mexican states? Dynamic...

Whereas a large variety of previous studies show mixed results regarding the relationship between public investment and economic outcome, several studies have been conducted on related issues in Korea. The present study deals with the effect of public investment in Korea on economic growth and...

This paper incorporates the notion of public capital in a Blanchard OLG model to study the effects of debt-financed public investments on growth and welfare in the long-run. The simple analytic result is that public debt can enhance both welfare and private capital in equilibrium, conditional on...

There has been an international trend towards shifting the provision of public services down to lower levels of government. That decentralization has increased the relative importance of local governments. This paper examines the relationship between spending by those local governments and...