Fournier, Jean-Marc, (2016), “The positive effect of public investment on potential growth”, OECD Economics Department Working Paper No. 1347, 22 November An estimated baseline convergence model capturing the long-term effect of human capital and physical investment on potential output for a panel of OECD countries is augmented with public investment and its components. The estimations suggest that public investment has a positive effect on long-term growth and on labour productivity. …Read More

Mourougane, Annabelle, Botev, Jarmila, Fournier, Jean-Marc, Pain Nigel, Rusticelli, Elena, (2016), “Can an increase in public investment sustainably lift economic growth?”, OECD Economics Department Working Paper No 1351, 24 November This paper seeks to identify the conditions under which raising public investment can sustainably lift growth without deteriorating public finances. To do so, it relies on a range of simulations using three different macro-structural models. According to the simulations, OECD governments …Read More

Hermansen, Mikkel, Ruiz, Nicolas, Causa, Orsetta, (2016), “The distribution of the growth dividends”, OECD Economics Department Working Papers No. 1343, 17 November Widespread increases in inequality over the past three decades have raised the question of the distribution of the growth dividends. This paper finds that there is no single answer to this question. The mechanisms that link growth and income inequality are found to differ depending on the sources of …Read More

Causa, Orsetta, Hermansen, Mikkel, Ruiz, Nicolas, (2016), “The Distributional Impact of Structural Reforms”, OECD Economics Department Working Papers No. 1342, 17 November In a majority of OECD countries, GDP growth over the past three decades has been associated with growing income disparities. To shed some lights on the potential sources of trade-offs between growth and equity, this paper investigates the long-run impact of structural reforms on household incomes across the distribution, hence …Read More