Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/162693 
Year of Publication: 
2017
Series/Report no.: 
ECB Working Paper No. 2021
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We consider the effect of an increase in public investments on output in Europe against the background of a sharp drop of public investments in a number of EU countries during the crisis and subsequent policy discussions on the need to stimulate public investments. We start with a brief overview of recent developments in public investments, including some methodological issues, and provide a literature overview of the effect of public investments on growth. On the basis of updated estimates of the public capital stock, we estimate the output response to a public capital impulse, using VAR models. In addition, using a structural model, we investigate the sensitivity of the macroeconomic impact of an increase in public investments to alternative assumptions about economic structures and policy implementations.
Subjects: 
fiscal policy
public investment
euro area
general equilibrium modelling
JEL: 
E32
E62
C30
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-2743-7
Document Type: 
Working Paper

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