Pereira, Alfredo Marvão de Fátima Pinho, Maria da Silva Costa, José
Year of Publication:
45th Congress of the European Regional Science Association: "Land Use and Water Management in a Sustainable Network Society", 23-27 August 2005, Amsterdam, The Netherlands
In this work we use a VAR/ECM approach to determine the effects of aggregated public investment on output, employment and private investment for five EU countries. Based on impulse-response functions associated to the estimated VAR, we obtain long-term accumulated elasticities, long-term marginal productivities and annual rates of return, allowing for an economy performance analysis. Based on our results, we can conclude that, generally, the aggregated public investment crowds in output, employment and private investment, and it can be considered a useful tool in growth in the long run.