Finanzierungsformen und Opportunitätskosten öffentlicher Investitionen / Public Debt and Opportunity Costs of Public Investment

Kellermann Kersten ()
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Kellermann Kersten: Hadlaubstr. 26, CH-8044 Zürich, Switzerland

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2004, vol. 224, issue 4, 471-487

Abstract: In the paper we discuss investment- and financing rules for the public sector to maximize a social welfare function. We show, that in the long run the opportunity costs of credit financed public investments exceed the opportunity costs of tax financed public investments. Financing public investment by credits is only justified if a considerable under-supply of public capital exist initially. We illustrate this result by a simulation. Nevertheless, it can be shown that the German government chanced its financing policy in the 70s from tax to credit financing.

Keywords: Public investment; public debt; tax-financing; debt-financing; golden rule of investment; Öffentliche Investitionen; Staatsverschuldung; Steuerfinanzierung; Art. 115 GG; Goldene Regel; Public investment; public debt; tax-financing; debt-financing; golden rule of investment (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:224:y:2004:i:4:p:471-487

DOI: 10.1515/jbnst-2004-0405

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