Resource title

Factor Mobility, Government Debt and the Decline in Public Investment

Resource image

image for OpenScout resource :: Factor Mobility, Government Debt and the Decline in Public Investment

Resource description

This paper tries to explain the declining level of public investment in OECD countries. The theoretical framework hints to the relevance of a number of demand and supply factors – ranging from the yield of public investment to institutions like the EU deficit limits. The econometric results indicate that the decline is largely due to two developments: First to the pile-up of public debt since the 70s which in the 90s severely restricted ability to finance new investment. Second to the increasing mobility of factors that has added to the financing difficulties. In contrast to that neither the privatisation process nor EU deficit restrictions of the Maastricht Treaty can explain the decline.

Resource author

Friedrich Heinemann

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24787

Resource license

Adapt according to the presented license agreement and reference the original author.