Fiscal Policy's Long-term Influence on Investment Rate

• Authors: Krajewski P. , Mackiewicz M.
• Languages of publication: PL

Abstracts

EN

The study aimed at establishing the long-term influence of fiscal policy on investments in fixed assets. A cross-sectional sample of data covering 27 countries during 1960 - 2003 was used. It was found that an increase in deficit equal to 1 % of GDP decreases investments by 0.3 % of GDP, while 1 % increase in revenue of public finance sector corresponds to a decrease in investments equal to 0.2 % of GDP. The study results suggest that both, expansive fiscal policy, as well as the increase of the share of public sector in the economy, correspond, as a rule, to a reduction in long-term asset accumulation, which in turn, might negatively affect economic growth in longer perspective.

Keywords

EN

FISCAL POLICY; INVESTMENT RATE; PUBLIC DEBT AND GROWTH

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Komitet Nauk Ekonomicznych PAN, Polskie Towarzystwo Ekonomiczne
• Journal: Ekonomista
• Year: 2007
• Issue: 2
• Pages: 181-198
• Document type: ARTICLE

Contributors

author

Krajewski P.

author

Mackiewicz M.

• P. Krajewski, Uniwersytet Lódzki, Instytut Ekonomii, ul. Rewolucji 1905r. 41, 90-214 Lódz, Poland

Identifiers

CEJSH db identifier

07PLAAAA02755627