Growth and Debt Effects of a Credit-Financed Public Investment Offensive

Autor: Sebastian Dullien, Ekaterina Jürgens, Christoph Paetz, Sebastian Watzka
Jazyk: němčina
Rok vydání: 2021
Předmět:
Zdroj: Wirtschaftsdienst, Vol 101, Iss 9, Pp 700-705 (2021)
Druh dokumentu: article
ISSN: 0043-6275
1613-978X
DOI: 10.1007/s10273-021-3003-5
Popis: Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % to 4 % above the baseline in the long run. Additionally, private investment is stimulated and rises by 4 % to 5 % above the baseline. These effects are amplified when an increase in the productivity of the private capital stock due to improved public infrastructure is taken into account.
Databáze: Directory of Open Access Journals
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