Public Investment and Welfare: Theory and Empirical Implications

Tullio Jappelli () and Andrea Ripa di Meana

No 887, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper analyses the determinants of public expenditures allocated to investment. We perform welfare analysis in an overlapping generations model with public consumption, public investment, debt and taxes. The optimal public investment share depends positively on the productive contribution of public investment, and negatively on the preference for public consumption relative to private consumption and on the weight that the government assigns to the older generation. We then provide empirical evidence that the old age dependency ratio is the main determinant of the international variability of the share of public resources allocated to investment.

Keywords: Fiscal Policy; Public Investment (search for similar items in EconPapers)
JEL-codes: E62 H54 (search for similar items in EconPapers)
Date: 1994-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=887 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:887

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=887

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().