The economic and financial crisis in Europe is affecting the financing of long-term infrastructure investment. There … are multiple clearly identifiable channels: reduced demand for long-term investment, a tightening prudential framework for … investment demand, correction of pricing of risk). Consequently, public policy instruments should not address the accessibility …

between business formation and medium run growth. An investment externality is identified that results in underaccumulation of … capital in the decentralized market equilibrium and, thus, creates an investment multiplier. Some form of investment promotion … is called for. The paper compares the effectiveness of policies to promote business formation with a general investment …

. Therefore, in an inflationary period generous tax depreciation provisions do not promote private investment as designed, but …