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Debt financing of public investment: On a popular misinterpretation of "the golden rule of public sector borrowing"

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  • Kellermann, Kersten

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  • Kellermann, Kersten, 2007. "Debt financing of public investment: On a popular misinterpretation of "the golden rule of public sector borrowing"," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1088-1104, December.
    • Handle: RePEc:eee:poleco:v:23:y:2007:i:4:p:1088-1104
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    1. Marchand, Maurice & Pestieau, Pierre, 1984. "Discount rates and shadow prices for public investment," Journal of Public Economics, Elsevier, vol. 24(2), pages 153-169, July.
    2. Sandmo, Agnar & Dreze, Jacques H, 1971. "Discount Rates for Public Investment in Closed and Open Economies," Economica, London School of Economics and Political Science, vol. 38(152), pages 395-412, November.
    3. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    4. Kellermann Kersten, 2004. "Finanzierungsformen und Opportunitätskosten öffentlicher Investitionen / Public Debt and Opportunity Costs of Public Investment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 224(4), pages 471-487, August.
    5. Feehan, James P, 1989. "Pareto-Efficiency with Three Varieties of Public Input," Public Finance = Finances publiques, , vol. 44(2), pages 237-248.
    6. Poterba, James M., 1995. "Capital budgets, borrowing rules, and state capital spending," Journal of Public Economics, Elsevier, vol. 56(2), pages 165-187, February.
    7. Peter Diamond, 1968. "The Opportunity Costs of Public Investment: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(4), pages 682-688.
    8. César Calderón & William Easterly & Luis Servén, 2002. "Infrastructure Compression and Public Sector Solvency in Latin America," Working Papers Central Bank of Chile 187, Central Bank of Chile.
    9. Marc Robinson, 1998. "Measuring compliance with the Golden Rule," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 447-462, November.
    10. Yakita, Akira, 1994. "Public investment criterion with distorted capital markets in an overlapping generations economy," Journal of Macroeconomics, Elsevier, vol. 16(4), pages 715-728.
    11. Kersten Kellermann, 2006. "A Note on Intertemporal Fiscal Competition and Redistribution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(2), pages 151-161, May.
    12. Mr. George Kopits, 2001. "Fiscal Rules: Useful Policy Framework or Unnecessary Ornament?," IMF Working Papers 2001/145, International Monetary Fund.
    13. Jeremy J. Siegel & Richard H. Thaler, 1997. "Anomalies: The Equity Premium Puzzle," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 191-200, Winter.
    14. MARCHAND, Maurice & PESTIEAU, Pierre, 1984. "Discount rates and shadow prices for public investment," LIDAM Reprints CORE 586, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.
    16. Friedrich Heinemann, 2006. "Factor mobility, government debt and the decline in public investment," International Economics and Economic Policy, Springer, vol. 3(1), pages 11-26, April.
    17. Charles Wyplosz, 1997. "EMU: Why and How It Might Happen," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 3-21, Fall.
    18. Shawn Ni & Xinghe Wang, 1995. "Balanced Government Budgets versus Deficit Finance in a Growth Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 1120-1134, November.
    19. Mr. George Kopits & Mr. Steven A. Symansky, 1998. "Fiscal Policy Rules," IMF Occasional Papers 1998/011, International Monetary Fund.
    20. Cukierman, Alex & Meltzer, Allan H, 1986. "A Positive Theory of Discretionary Policy, the Cost of Democratic Government and the Benefits of a Constitution," Economic Inquiry, Western Economic Association International, vol. 24(3), pages 367-388, July.
    21. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
    22. Kato, Ryuta Ray, 2002. "Government Deficit, Public Investment, and Public Capital in the Transition to an Aging Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 462-491, December.
    23. Robert A. J. Dur & Ben D. Peletier & Otto H. Swank, 1999. "Voting on the Budget Deficit: Comment," American Economic Review, American Economic Association, vol. 89(5), pages 1377-1381, December.
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    1. Rogoff the liar and Reinhart the idiot.
      by Ralph Musgrave in Ralphonomics on 2013-05-03 13:45:00

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    2. Hans Pitlik & Michael Klien & Stefan Schiman, 2017. "Stabilitätskonforme Berücksichtigung nachhaltiger öffentlicher Investitionen," WIFO Studies, WIFO, number 60595, April.
    3. Zharku Lutfi, 2018. "(Un)Productive Use of Public Debt in Kosovo," Ekonomika (Economics), Sciendo, vol. 97(2), pages 18-37, December.
    4. Kellermann, Kersten, 2007. "Fiscal competition and a potential growth effect of centralization," KOFL Working Papers 4, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz.
    5. Musgrave, Ralph S., 2010. "The flaws in Keynsian borrow and spend," MPRA Paper 25434, University Library of Munich, Germany.
    6. Eduard N. Hakobyan & Narek N. Karapetyan, 2018. "How to Ensure Debt Sustainability and React to Economic Cycles? The Upgrade of Fiscal Rules in Armenia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 10-20, August.
    7. Daxin Dong, 2021. "The impact of financial openness on public debt in developing countries," Empirical Economics, Springer, vol. 60(5), pages 2261-2291, May.
    8. Philipp Harms & Joachim Lutz, 2014. "Foreign vs. domestic public debt and the composition of government expenditure: A political-economy approach," Working Papers 1415, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 20 Nov 2014.
    9. Shvets, Serhii, 2020. "The golden rule of public finance under active monetary stance: endogenous setting for a developing economy," MPRA Paper 101232, University Library of Munich, Germany.
    10. Branimir Markovic & Bozica Dunkovic & Dinko Jukic, 2009. "Public Investments and Borrowing: New Challenges for the Local Governmetns in Eastern Croatia," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 5, pages 497-508.
    11. Ramón José Torregrosa Montaner, 2015. "Common-property, public infrastructure and rent dissipation in the long-run," Working Papers. Serie AD 2015-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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