EconStor >
European Investment Bank (EIB), Luxembourg >
Economic and Financial Reports, European Investment Bank (EIB) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/45279
  
Title:Evolution and determinants of public investment in Europe PDF Logo
Authors:Välilä, Timo
Mehrotra, Aaron
Issue Date:2005
Series/Report no.:Economic and financial reports / European Investment Bank 2005/01
Abstract:We examine the evolution of public investment and public capital stocks in Europe during the past three decades. Against this background, we employ an array of econometric techniques to assess the macroeconomic determinants of public investment, with a special focus on its long-term trend. We find that public investment has been determined by national income, the stance of budgetary policies, and fiscal sustainability considerations. Neither the cost of financing nor the fiscal rules embodied in EMU have had a systemic impact on public investment. The significant downtrend that characterises the evolution of public investment, measured in relation to GDP, in non-cohesion countries is chiefly determined by drawn-out episodes of fiscal consolidation, unrelated to EMU.
JEL:E62
H54
C23
Document Type:Working Paper
Appears in Collections:Economic and Financial Reports, European Investment Bank (EIB)

Files in This Item:
File Description SizeFormat
656631767.pdf348.56 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/45279

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.