01838cas a2200253 a 4500 AALejournalIMF017912 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484320709 1018-5941 BD-DhAAL BD-DhAAL Furceri, Davide. The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies / Davide Furceri, Bin Grace Li. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (39 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 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. Mode of access: Internet Li, Bin Grace. IMF Working Papers; Working Paper ; No. 2017/217 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/217/001.2017.issue-217-en.xml IMF e-Library