Quantifying the Macroeconomic and Fiscal Effects of Selected Infrastructure and Education Investments in Germany.
Tom Krebs and Martin Scheffel, University of Mannheim Working Paper, September 2016.
BYFORUM NEW ECONOMY
PUBLISHED1. NOVEMBER 2019
Which investment the state should engage and which should it leave to the private sector? One way to answer this question is to estimate economic and fiscal returns. An important work in this sense has been done by one of the Forum’s academic partners, Tom Krebs in 2016. Krebs and Scheffel show that higher investment in education and infrastructure would improve economic outcomes and strengthen long-term public finances. For example, increased public spending on child-care would increase employment and lower inequality.