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Public investment efficiency and growth

Berg, Andrew, Presbitero, Andrea, Felipe Zanna, Luis, (2016), “Public investment efficiency and growth”, Voxeu, 5 January

What is the growth impact of an increase in the rate of public investment spending? And in particular, how does this depend on the efficiency of public investment spending? These questions have emerged in the debate about the need to bolster public investment to exit a low-growth, high-unemployment conundrum in Europe (e.g. Summers 2014, Teulings and Baldwin 2014, de Grauwe 2015).

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