The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies write by Davide Furceri. This book was released on 2017-10-20. The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies available in PDF, EPUB and Kindle. This paper provides new empirical evidence of the macroeconomic effects of public investment in developing economies. Using public investment forecast errors to identify unanticipated changes in public investment, the paper finds that increased public investment raises output in the short and medium term, with an average short-term fiscal multiplier of about 0.2. We find some evidence that the effects are larger: (i) during periods of slack; (ii) in economies operating with fixed exchange rate regimes; (iii) in more closed economies; (iv) in countries with lower public debt; and (v) in countries with higher investment efficiency. Finally, we show that increases in public investment tend to lower income inequality.
The Distributional Effects of Government Spending Shocks in Developing Economies
The Distributional Effects of Government Spending Shocks in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Distributional Effects of Government Spending Shocks in Developing Economies write by Davide Furceri. This book was released on 2018-03-14. The Distributional Effects of Government Spending Shocks in Developing Economies available in PDF, EPUB and Kindle. We construct unanticipated government spending shocks for 103 developing countries from 1990 to 2015 and study their effects on income distribution. We find that unanticipated fiscal consolidations lead to a long-lasting increase in income inequality, while fiscal expansions lower inequality. The results are robust to several measures of income distribution and size of the fiscal shocks, to an alternative identification strategy, across expansions and recessions and across country groups (low-income countries versus emerging markets). An additional contribution of the paper is the computation of the medium-term inequality multiplier. This is on average about 1 in our sample, meaning that a cumulative decrease in government spending of 1 percent of GDP over 5 years is associated with a cumulative increase in the Gini coefficient over the same period of about 1 percentage point. The multiplier is larger for total government expenditure than for public investment and consumption (with the former having larger effect), likely due to the redistributive role of transfers. Finally, we find that (unanticipated) fiscal consolidations lead to an increase in poverty.
The Macroeconomic Effects of Public Investment
The Macroeconomic Effects of Public Investment - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Macroeconomic Effects of Public Investment write by Mr.Abdul Abiad. This book was released on 2015-05-04. The Macroeconomic Effects of Public Investment available in PDF, EPUB and Kindle. This paper provides new evidence of the macroeconomic effects of public investment in advanced economies. Using public investment forecast errors to identify the causal effect of government investment in a sample of 17 OECD economies since 1985 and model simulations, the paper finds that increased public investment raises output, both in the short term and in the long term, crowds in private investment, and reduces unemployment. Several factors shape the macroeconomic effects of public investment. When there is economic slack and monetary accommodation, demand effects are stronger, and the public-debt-to-GDP ratio may actually decline. Public investment is also more effective in boosting output in countries with higher public investment efficiency and when it is financed by issuing debt.
Reality Check
Reality Check - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Reality Check write by John R. Nellis. This book was released on 2005. Reality Check available in PDF, EPUB and Kindle. Throughout the 1990's, privatization of inefficient state-owned enterprises was strongly embraced in developing and transitional economies. Little attention has gone to the distributional implications of the privatization movement, a particularly surprising oversight given the current backlash in many settings against further privatization. This book offers a comprehensive set of country-specific studies on the effects of privatization on people --winners and losers in different income, employment, and education groups. The studies analyze the changes in public tax revenue from privatized enterprises, shifts in pension and other liabilities, and changes in income of different groups. Contributors include David McKenzie (Stanford University), Dilip Mookherjee (Boston University), Gover Barja (Universidad Católica Boliviana, La Paz), Miguel Urquiola (Columbia University), Samuel Freije (Universidad de Las Américas in Puebla, Mexico), Luis A. Rivas (Ministry of Finance and Central Bank of Nicaragua), Máximo Torero, Enrique Schroth, and Alberto Pasco Font (Group of Analysis for Development [GRADE], Lima), Roberto Macedo (University of São Paulo, Presbyterian Mackenzie University, and Foundation Institute of Economic Research, São Paolo), Antonio Estache (World Bank), Michael Bleyzer and Edi Segura (SigmaBleyzer Corporation), Gary H. Jefferson, (Brandeis University), Su Jian (Brandeis and Peking Universities), Jiang Yuan and Yu Xinhua (National Bureau of Statistics, Beijing), and Malathy Knight-John and P.P.A. Wasantha (Institute of Policy Studies, Sri Lanka).
The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries
The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries write by Adrian Peralta-Alva. This book was released on 2018-06-13. The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries available in PDF, EPUB and Kindle. We quantitatively investigate the macroeconomic and distributional impacts of fiscal consolidations in low-income countries (LICs) through value added tax (VAT), personal income tax (PIT), and corporate income tax (CIT). We extend the standard heterogeneous agents incomplete markets model by including multiple sectors and rural-urban distinction to capture salient features of LICs. We find that overall, VAT has the least efficiency costs but is highly regressive, while PIT impacts the economy in the opposite way with CIT staying in between. Cash transfers targeting rural households mitigate the negative distributional impacts of VAT most effectively, while public investment leads to little redistribution.
