English, Article edition: Investissement public et effets non linéaires des déficits budgétaires Alexandru Minea; Patrick Villieu

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Investissement public et effets non linéaires des déficits budgétaires
Author
  • Alexandru Minea
  • Patrick Villieu
Physical Description
  • article
Notes
  • We propose a simple growth model in which the influence of fiscal deficits on public investment depends upon the ratio between public debt and GDP. When the public debt ratio is small, raising fiscal deficits yields positive effects, since public consumption may negatively adjust to the extra debt burden. However, when the public debt ratio is important, public consumption may no longer exert this role, and raising fiscal deficits reduces public investment. Our analysis using a panel data for OECD countries confirms the existence of non linear effects of fiscal deficits on public investment. JEL Classification ? H62, H63, E62.
  • deficit, public investment, non-linear effects of fiscal policy
  • RePEc:cai:reldbu:rel_753_0281
Language
  • English
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