The Macroeconomic Effects of Public Investment: Evidence from Advanced Economies

Abdul Abiad, Davide Furceri and Petia Topalova, IMF Working Paper, May 2015

 

Abiad, Furceri and Topalova find that increased public infrastructure investment raises output in both the short and long term, particularly during periods of economic weakness. With borrowing costs low, countries with infrastructure needs should boost spending.

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