Capital and public investment in Italy: macroeconomic effects, measurement and regulatory weaknesses

Fabio Busetti, Cristina Giorgiantonio, Giorgio Ivaldi (), Sauro Mocetti, Alessandro Notarpietro and Pietro Tommasino
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Giorgio Ivaldi: Bank of Italy

No 520, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Public investment expenditure in Italy has decreased markedly in the last few years. Several indicators suggest that the quantity and quality of Italy’s public capital are lower than in the other main euro area economies. The paper presents some estimates of the macroeconomic effects of an increase in public investment. It also discusses how the public capital stock can be measured and looks at public investment dynamics in the main euro-area economies. Finally, it reviews some regulatory aspects which could slow down public works in Italy. The authors conclude that an increase in public investment can only have a significant macroeconomic impact if the resources are utilized efficiently, interventions are appropriately chosen and implemented quickly, and good financial conditions are preserved. It appears crucial to improve evaluation, planning and monitoring of public infrastructure projects.

Keywords: public investment multiplier; public capital; public procurement (search for similar items in EconPapers)
JEL-codes: E62 H54 K23 R42 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-law and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_520_19

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