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Title: |
Public Spending and Private Investment:
Evidence from Greece |
| Author: |
Mamatzakis, E.
C. |
| Author
Affiliation: |
City U |
| Source: |
International Economic Journal, Winter 2001, v. 15, no. 4, pp. 33-46 |
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Publication Date: |
Winter 2001 |
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Abstract: |
The aim of this paper is to investigate
whether there is a link between disaggregated measures of government
expenditures and private investment in Greece. A cointegration analysis
of a multivariate system of equations is applied in order to empirically
estimate the long run relationships between private investment and
different measures of government expenditures. Subsequently IRF and VDC
are estimated. Government investment is found to assert a positive
effect on private investment, supporting in this way the capital
accumulation process. On the other hand, government consumption appears
to compete for the same resources with government investment, while it
negatively affects private investment. |
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