We study the strategic incentives of regional governments to allocate their budget to public investment and to public consumption expenditures against the background of an incentive-compatible redistribution policy set by the central government. Regional investment changes the productivity...

This paper evaluates the effect of shocks in government investment on private investment and national income, focusing on "crowding-in" or "crowding-out" effect in India. Recent studies do not deal with this issue by taking account of the heterogeneous effect of public investment as regards to...

This paper analyses the contribution of public investment to growth in southern Italy in the second half of the twentieth century (1951-1995). The period saw the only convergence in modern times of the Mezzogiorno towards the Italian average (1951-1973), followed by divergence (1974-1995). Using...

This study examines the impact of public investment on private investment in South Africa using the autoregressive distributed-lag (ARDL) and nonlinear ARDL bounds testing approach for the period from 1980 to 2018. The ARDL results show that public investment crowds in private investment in the...

The U.S. economy is growing more slowly than it can and should be growing because it does not invest enough in infrastructure, science, and education. There is an important procedural obstacle to funding public investments — a process of scoring the economic effect of legislation. This process...

While expanding public investment can help filling infrastructure bottlenecks, scaling up too much and too fast often leads to inefficient outcomes. This paper rationalizes this outcome looking at the association between cost inflation and public investment in a large sample of road construction...

This paper critically evaluates the argument that all government spending is, from the perspective of economic theory, simply consumption spending. The argument is questionable because it assumes that for investment to be meaningful, it must be directed toward consumer satisfaction, where...

In this paper we analyze the rationality that sustains the public investments on white elephants applied to the construction of tourist facilities in Mexico. The main result of this paper is that there exist two kinds of rationalities in the construction of white elephants. One is a similar...

This paper contributes to the debate on the relationship between public-capital accumulation and private investment in India along the following dimensions. First, acknowledging major structural changes that the Indian economy has undergone in the past three decades, we study whether public...