Redirigiendo al acceso original de articulo en 16 segundos...

The Effect of Public Investment on the Cycle and Economic Growth: A Simple Theoretical Model

Daniel Velázquez-Orihuela    
Juan-Roberto Vargas-Sánchez    
Zeus Salvador Hernández-Veleros    


In the specialized literature, there are two versions of the effect of public investment on growth. One of them states that the relationship between them is positive; the other states that there is optimal public investment. This paper proposes an analytical theoretical scheme supporting that, in the short term, the relationship between public investment and economic growth is positive. However, in the long term, this relationship can still be positive or become negative depending on whether there is a crowding-out or a crowding-in effect. Whenever a crowding-in effect occurs, and the government does not have to decrease its investment, it does not increase debt or taxes, and the economy will be on a growth path. However, if there is a crowding-out effect, the trajectory of the economy will depend on the productive efficiency of the displaced capital.Keywords: public investment, economic cycle, economic growth, crowding-in, crowding-out.JEL Classifications: E10, E32, E60DOI:

 Artículos similares

Purvi Jhawar and Jayanta Kumar Seal    
The literature on the influence of political and policy-related uncertainties on financial aspects has gained an impetus in the last two decades. This study adds to the existing literature by reviewing the impact of political uncertainty on initial publi... ver más

Sandy Harianto     Pág. 204 - 216
This study aims to explore the effect of political connections, external auditor quality, and family ownership on real and discretionary accrual earnings management practices in public companies in Indonesia. So far, previous studies have shown inconclus... ver más

Sihar Tambun,(Universitas 17 Agustus 1945 JakartaIndonesia)Ani Haryati,(Universitas 17 Agustus 1945 JakartaIndonesia)     Pág. 74 - 86
AbstractThe purpose of this study was to examine the direct effect of public service satisfaction, trust in the government and perceptions of corruption on tax morale, the direct effect of tax morale on tax awareness. As well as testing the effect of the... ver más

Endah Sri Amsiah, Suparno Suparno, H. Ahmad Nawawi     Pág. 962 - 968
The purpose of this study was to determine, test and analyze the Influence of the Capital Adequacy Ratio and Return On Assets together on lending to conventional commercial banks.The population taken in this study were public banks listed on the Indonesi... ver más

Rizky Yanuar Christianta Tarigan, Wenny Anggresia Ginting, Yulia Theresia Tambunan     Pág. 1336 - 1347
 Becoming a public company is one of the way for a company to survive of business competition. Especially mining companies that we know that not a little capital is needed in developing their business. Therefore, it is very important for mining comp... ver más