The robustness of the effects of public investment in infrastructure on private output: Evidence for Germany

Tobias Kitlinski

No 560, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper investigates the effects of public investment in infrastructure on private output for Germany. Using a multivariate framework we explore the impact of a diverging selection of variables on the ensuing estimates and document confidence intervals computed following the bootstrap procedure. Our results suggest that the effect of public investment in infrastructure is positive on GDP and private investment while the labor market is negatively affected. However, the size of the estimated effects strongly depends on the choice of the variables. Furthermore, an investigation of a recursive estimation reveals that the estimated effects decrease over time.

Keywords: Public investment; infrastructure; vector autoregressive models; cointegration (search for similar items in EconPapers)
JEL-codes: E6 H54 R4 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-mac and nep-tre
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:560

DOI: 10.4419/86788641

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