01732cas a2200253 a 4500 AALejournalIMF016664 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475516678 1018-5941 BD-DhAAL BD-DhAAL Ganelli, Giovanni. The Welfare Multiplier of Public Infrastructure Investment / Giovanni Ganelli, Juha Tervala. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (27 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 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. Mode of access: Internet Tervala, Juha. IMF Working Papers; Working Paper ; No. 2016/040 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/040/001.2016.issue-040-en.xml IMF e-Library