Optimal public investment, growth, and consumption : evidence from African countries
| 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 |