dc.contributor.author |
Fosu, Augustin Kwasi
|
|
dc.contributor.author |
Getachew, Yoseph
|
|
dc.contributor.author |
Ziesemer, Thomas H.W.
|
|
dc.date.accessioned |
2016-02-17T09:17:23Z |
|
dc.date.issued |
2016-12 |
|
dc.description.abstract |
This paper develops a model positing a nonlinear relationship between public investment
and growth. The model is then applied to a panel of African countries, using nonlinear
estimating procedures. The growth-maximizing level of public investment is estimated at
about 10% of GDP, based on System GMM estimation. The paper further runs
simulations, obtaining the constant optimal public investment share that maximizes the
sum of discounted consumption as between 8.1% and 9.6% of GDP. Compared with the
observed end-of-panel mean value of no more than 7.26%, these estimates suggest that
there has been significant public underinvestment in Africa. |
en_ZA |
dc.description.embargo |
2016-07-30 |
|
dc.description.librarian |
hb2015 |
en_ZA |
dc.description.uri |
http://journals.cambridge.org/ |
en_ZA |
dc.identifier.citation |
Fosu, AK, Getachew, Y & Ziesemer, THW 2016, 'Optimal public investment, growth, and consumption : evidence from African countries', Macroeconomic Dynamics, vol. 20, no. 8, pp. 1957-1986. |
en_ZA |
dc.identifier.issn |
1365-1005 (print) |
|
dc.identifier.issn |
1469-8056 (online) |
|
dc.identifier.other |
10.1017/S1365100515000206 |
|
dc.identifier.uri |
http://hdl.handle.net/2263/51421 |
|
dc.language.iso |
en |
en_ZA |
dc.publisher |
Cambridge University Press |
en_ZA |
dc.rights |
© 2015 Cambridge University Press |
en_ZA |
dc.subject |
Public investment |
en_ZA |
dc.subject |
Economic growth |
en_ZA |
dc.subject |
Nonlinearity |
en_ZA |
dc.title |
Optimal public investment, growth, and consumption : evidence from African countries |
en_ZA |
dc.type |
Postprint Article |
en_ZA |