01952cas a2200265 a 4500 AALejournalIMF015205 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475578874 1018-5941 BD-DhAAL BD-DhAAL Abiad, Abdul. The Macroeconomic Effects of Public Investment : Evidence from Advanced Economies / Abdul Abiad, Davide Furceri, Petia Topalova. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Furceri, Davide. Topalova, Petia. IMF Working Papers; Working Paper ; No. 2015/095 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/095/001.2015.issue-095-en.xml IMF e-Library