01821cas a2200265 a 4500 AALejournalIMF021271 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513557694 1018-5941 BD-DhAAL BD-DhAAL Espinoza, Raphael. The Fiscal Multiplier of Public Investment : The Role of Corporate Balance Sheet / Raphael Espinoza, Juliana Gamboa-Arbelaez, Mouhamadou Sy. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (31 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 explores whether public investment crowds out or crowds in private investment. To this aim, we build a database of about half a million firms from 49 countries. We find that the effect of public investment on corporate investment depends both on leverage and financial constraints. Public investment boosts private investment for firms with low leverage. However, for firms with high leverage, private investment does not react to an increase in public investment, in line with theory (Myers 1977). We also find that the effect of public investment on corporate investment is much weaker for firms that are financially constrained. Mode of access: Internet Gamboa-Arbelaez, Juliana. Sy, Mouhamadou. IMF Working Papers; Working Paper ; No. 2020/199 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/199/001.2020.issue-199-en.xml IMF e-Library