Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153298
Authors: 
Afonso, António
St. Aubyn, Miguel
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 864
Abstract: 
Using annual data from 14 European Union countries, plus Canada, Japan and the United States, we evaluate the macroeconomic effects of public and private investment through VAR analysis. From impulse response functions, we are able to assess the extent of crowding-in or crowding-out of both components of investment. We also compute the associated macroeconomic rates of return of public and private investment for each country. The results point mostly to the existence of positive effects of public investment and private investment on output. On the other hand, the crowding-in effects of public investment on private investment vary across countries, while the crowding-in effect of private investment on public investment is more generalised.
Subjects: 
European Union
Fiscal Policy
impulse response
private investment
Public investment
Vector autoregression
JEL: 
C32
E22
E62
Document Type: 
Working Paper

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