investment and output also raises the public capital depreciation rate and reduces public capital accumulation due to increased … expenditures between 'new' public investment and maintenance and hence avoid excessive taxation that is required under increasing …

We analyze within a dynamic model how firms decide on capital investment if the accompanying adjustment costs are a … and investment ratio are both constant, carry out comparative dynamic analysis and discuss the model's policy implications. …

and risk premiums. To explain the empirical findings, we extend the neoclassical q-theory model of investment and specify …High rates of government investment in public sector capital forecast high risk premiums both at the aggregate and firm …-level. This result is in sharp contrast with the well-documented negative relationship between the private sector investment rate …

, unanticipated delays in the provision of public capital generate too much consumption and too little private investment relative to … public goods, a social planner allocates more resources to private investment and less to consumption relative to the first …