IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_520_19.html
   My bibliography  Save this paper

Capital and public investment in Italy: macroeconomic effects, measurement and regulatory weaknesses

Author

Listed:
  • Fabio Busetti

    (Bank of Italy)

  • Cristina Giorgiantonio

    (Bank of Italy)

  • Giorgio Ivaldi

    (Bank of Italy)

  • Sauro Mocetti

    (Bank of Italy)

  • Alessandro Notarpietro

    (Bank of Italy)

  • Pietro Tommasino

    (Bank of Italy)

Abstract

Public investment expenditure in Italy has decreased markedly in the last few years. Several indicators suggest that the quantity and quality of Italy’s public capital are lower than in the other main euro area economies. The paper presents some estimates of the macroeconomic effects of an increase in public investment. It also discusses how the public capital stock can be measured and looks at public investment dynamics in the main euro-area economies. Finally, it reviews some regulatory aspects which could slow down public works in Italy. The authors conclude that an increase in public investment can only have a significant macroeconomic impact if the resources are utilized efficiently, interventions are appropriately chosen and implemented quickly, and good financial conditions are preserved. It appears crucial to improve evaluation, planning and monitoring of public infrastructure projects.

Suggested Citation

  • Fabio Busetti & Cristina Giorgiantonio & Giorgio Ivaldi & Sauro Mocetti & Alessandro Notarpietro & Pietro Tommasino, 2019. "Capital and public investment in Italy: macroeconomic effects, measurement and regulatory weaknesses," Questioni di Economia e Finanza (Occasional Papers) 520, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_520_19
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2019-0520/QEF_520_19.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giuseppe Ferrero & Massimiliano Pisani & Martino Tasso, 2022. "Policy Mix During a Pandemic Crisis: A Review of the Debate on Monetary and Fiscal Responses and the Legacy for the Future," Springer Proceedings in Business and Economics, in: Luigi Paganetto (ed.), Economic Challenges for Europe After the Pandemic, pages 267-320, Springer.

    More about this item

    Keywords

    public investment multiplier; public capital; public procurement;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bdi:opques:qef_520_19. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    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.