IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i17p2382-2387.html
   My bibliography  Save this article

Do the components of government expenditure affect the long-run dynamics of private investments? A heterogeneous panel analysis with a multifactor error structure

Author

Listed:
  • Gianni Carvelli

Abstract

Using data on 30 OECD countries over 1993–2019, this paper examines the ties between the components of government expenditure and the supply side of the private sector. We employ an ECM version of the novel dynamic common correlated effects estimator (DCCE) in order to account for nonstationarity, country-heterogeneity, and cross-sectional dependence. The estimates suggest that allocating public resources toward general public services and health positively affects the long-run dynamics of private investments. Conversely, rises in the expenditure on housing and social protection are associated with significant crowding-out effects.

Suggested Citation

  • Gianni Carvelli, 2023. "Do the components of government expenditure affect the long-run dynamics of private investments? A heterogeneous panel analysis with a multifactor error structure," Applied Economics Letters, Taylor & Francis Journals, vol. 30(17), pages 2382-2387, October.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:17:p:2382-2387
    DOI: 10.1080/13504851.2022.2097175
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2022.2097175
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2022.2097175?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:30:y:2023:i:17:p:2382-2387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.