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The Welfare Multiplier of Public Infrastructure Investment, Giovanni Ganelli, Juha Tervala

Contributor
Abstract
We analyze the welfare multipliers of public spending (the consumption equivalent change in welfare for one dollar change in public spending) in a DSGE model. The welfare multipliers of public infrastructure investment are positive if infrastructure is sufficiently effective. When the medium-term output multipliers are consistent with the empirical estimates (1-1.4), the welfare multiplier is 0.8. That is, a dollar spent by the government for investment raises domestic welfare by equivalent of 0.8 dollars of private consumption. This suggests that the welfare gains of public infrastructure investment, if chosen wisely, may be substantial
Table Of Contents
Cover -- The Welfare Multiplier of Public Infrastructure Investment -- Abstract -- I. INTRODUCTION -- II. MODEL -- III. PARAMETERIZATION -- IV. OUTPUT AND WELFARE MULTIPLIERS OF PUBLIC SPENDING -- REFERENCES
Language
eng
Literary Form
non fiction
Physical Description
1 online resource (28 pages)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781513544489

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