Growth and Debt Effects of a Credit-Financed Public Investment Offensive

Growth and Debt Effects of a Credit-Financed Public Investment Offensive

Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % t...

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Main Authors: Sebastian Dullien, Ekaterina Jürgens, Christoph Paetz, Sebastian Watzka
Format: Article
Language:deu
Published: Springer 2021-09-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-021-3003-5
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spelling doaj-b43fbe90dc844d22a7b13dd80a46d2352021-09-26T11:38:00ZdeuSpringerWirtschaftsdienst0043-62751613-978X2021-09-01101970070510.1007/s10273-021-3003-5Growth and Debt Effects of a Credit-Financed Public Investment OffensiveSebastian Dullien0Ekaterina Jürgens1Christoph Paetz2Sebastian Watzka3in der Hans-Böckler-Stiftung, Inst. f. Makroökonomie u. Konjunkturf. (IMK)Fakultät für Sozial- und Wirtschaftswisssenschaften, Otto-Friedrich-Universität Bambergin der Hans-Böckler-Stiftung: Makroökonomische Arbeitsmarktforschung, Inst. f. Makroökonomie u. Konjunkturf. (IMK)in der Hans-Böckler-Stiftung: Europäische Konjunkturanalyse, Inst. f. Makroökonomie u. Konjunkturf. (IMK)Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % to 4 % above the baseline in the long run. Additionally, private investment is stimulated and rises by 4 % to 5 % above the baseline. These effects are amplified when an increase in the productivity of the private capital stock due to improved public infrastructure is taken into account.https://doi.org/10.1007/s10273-021-3003-5
collection DOAJ
language deu
format Article
sources DOAJ
author Sebastian Dullien
Ekaterina Jürgens
Christoph Paetz
Sebastian Watzka
spellingShingle Sebastian Dullien
Ekaterina Jürgens
Christoph Paetz
Sebastian Watzka
Growth and Debt Effects of a Credit-Financed Public Investment Offensive
Wirtschaftsdienst
author_facet Sebastian Dullien
Ekaterina Jürgens
Christoph Paetz
Sebastian Watzka
author_sort Sebastian Dullien
title Growth and Debt Effects of a Credit-Financed Public Investment Offensive
title_short Growth and Debt Effects of a Credit-Financed Public Investment Offensive
title_full Growth and Debt Effects of a Credit-Financed Public Investment Offensive
title_fullStr Growth and Debt Effects of a Credit-Financed Public Investment Offensive
title_full_unstemmed Growth and Debt Effects of a Credit-Financed Public Investment Offensive
title_sort growth and debt effects of a credit-financed public investment offensive
publisher Springer
series Wirtschaftsdienst
issn 0043-6275
1613-978X
publishDate 2021-09-01
description Abstract Simulations of a deficit-financed public investment programme in Germany amounting to €460 billion over ten years in the macroeconomic model NiGEM show that it will finance itself in 30 years at most, even under conservative model assumptions. In the basic version of the model, GDP is 3 % to 4 % above the baseline in the long run. Additionally, private investment is stimulated and rises by 4 % to 5 % above the baseline. These effects are amplified when an increase in the productivity of the private capital stock due to improved public infrastructure is taken into account.
url https://doi.org/10.1007/s10273-021-3003-5
work_keys_str_mv AT sebastiandullien growthanddebteffectsofacreditfinancedpublicinvestmentoffensive
AT ekaterinajurgens growthanddebteffectsofacreditfinancedpublicinvestmentoffensive
AT christophpaetz growthanddebteffectsofacreditfinancedpublicinvestmentoffensive
AT sebastianwatzka growthanddebteffectsofacreditfinancedpublicinvestmentoffensive
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