Government investment and the European stability and growth pact

Marco Bassetto and Vadym Lepetyuk

Economic Perspectives, 2007, issue Q III, pages 33-43

Abstract: The authors analyze whether it makes sense to treat public investment spending differently from other government spending when applying the deficit constraints mandated within the single European currency area. Given the low rates of population growth, mobility, and mortality in European countries, they find that excluding public investment from the computation of the deficit ceiling has only moderate implications for the current generations’ spending choices. They also show that excluding net investment yields better outcomes than excluding gross investment.

Keywords: Investments; European Monetary System (Organization) (search for similar items in EconPapers)
Date: 2007
View list of references View citations in EconPapers

Downloads: (external link)
http://www.chicagofed.org/publications/economicper ... t2_Bassetto_etal.pdf (application/pdf)

Related works:
Working Paper: Government Investment and the European Stability and Growth Pact (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fip:fedhep:y:2007:i:qiii:p:33-43:n:v.31no.3

Ordering information: This journal article can be ordered from
http://www.frbchi.or ... nt_order_script.html

Access Statistics for this article

More articles in Economic Perspectives from Federal Reserve Bank of Chicago
Contact information at EDIRC.
Series data maintained by Diane Rosenberger ().