Growth and Debt Effects of a Credit-Financed Public Investment Offensive
Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % t...
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| Format: | Article |
| Language: | deu |
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Sciendo
2021-09-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-021-3003-5 |
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| author | Sebastian Dullien Ekaterina Jürgens Christoph Paetz Sebastian Watzka |
| author_facet | Sebastian Dullien Ekaterina Jürgens Christoph Paetz Sebastian Watzka |
| author_sort | Sebastian Dullien |
| collection | DOAJ |
| description | Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % to 4 % above the baseline in the long run. Additionally, private investment is stimulated and rises by 4 % to 5 % above the baseline. These effects are amplified when an increase in the productivity of the private capital stock due to improved public infrastructure is taken into account. |
| format | Article |
| id | doaj-art-b43fbe90dc844d22a7b13dd80a46d235 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2021-09-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-b43fbe90dc844d22a7b13dd80a46d2352025-02-02T17:10:45ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-09-01101970070510.1007/s10273-021-3003-5Growth and Debt Effects of a Credit-Financed Public Investment OffensiveSebastian Dullien0Ekaterina Jürgens1Christoph Paetz2Sebastian Watzka3in der Hans-Böckler-Stiftung, Inst. f. Makroökonomie u. Konjunkturf. (IMK)Fakultät für Sozial- und Wirtschaftswisssenschaften, Otto-Friedrich-Universität Bambergin der Hans-Böckler-Stiftung: Makroökonomische Arbeitsmarktforschung, Inst. f. Makroökonomie u. Konjunkturf. (IMK)in der Hans-Böckler-Stiftung: Europäische Konjunkturanalyse, Inst. f. Makroökonomie u. Konjunkturf. (IMK)Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % to 4 % above the baseline in the long run. Additionally, private investment is stimulated and rises by 4 % to 5 % above the baseline. These effects are amplified when an increase in the productivity of the private capital stock due to improved public infrastructure is taken into account.https://doi.org/10.1007/s10273-021-3003-5 |
| spellingShingle | Sebastian Dullien Ekaterina Jürgens Christoph Paetz Sebastian Watzka Growth and Debt Effects of a Credit-Financed Public Investment Offensive Wirtschaftsdienst |
| title | Growth and Debt Effects of a Credit-Financed Public Investment Offensive |
| title_full | Growth and Debt Effects of a Credit-Financed Public Investment Offensive |
| title_fullStr | Growth and Debt Effects of a Credit-Financed Public Investment Offensive |
| title_full_unstemmed | Growth and Debt Effects of a Credit-Financed Public Investment Offensive |
| title_short | Growth and Debt Effects of a Credit-Financed Public Investment Offensive |
| title_sort | growth and debt effects of a credit financed public investment offensive |
| url | https://doi.org/10.1007/s10273-021-3003-5 |
| work_keys_str_mv | AT sebastiandullien growthanddebteffectsofacreditfinancedpublicinvestmentoffensive AT ekaterinajurgens growthanddebteffectsofacreditfinancedpublicinvestmentoffensive AT christophpaetz growthanddebteffectsofacreditfinancedpublicinvestmentoffensive AT sebastianwatzka growthanddebteffectsofacreditfinancedpublicinvestmentoffensive |