## Public Debt, Investment, and Growth: The DIG and DIGNAR Models

## Source details

**Canonical URL:** [Public Debt, Investment, and Growth: The DIG and DIGNAR Models](https://www.imf.org/en/capacity-development/training/icdtc/schedule/ol/2024/digxol24-147)

## Other formats

- [Markdown version](/en/capacity-development/training/icdtc/schedule/ol/2024/digxol24-147/index.md)
- [Structured JSON version](/en/capacity-development/training/icdtc/schedule/ol/2024/digxol24-147/index.json)
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## Bibliographic details
- Session: OL 24.147
- Location: Course conducted online
- Dates: May 1, 2024 - April 15, 2025 (50 weeks)
- Delivery method: Online Training
- Primary language: English
- Status: Deadline passed

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### Qualifications
- Some knowledge of economics is helpful.
- Basic Microsoft Excel skills and access to a computer with a reliable internet connection and a Google Chrome web browser are essential.

### Logistics
- Session No.: OL 24.147
- Delivery Method: Online Training
- Location: Course conducted online
- Date: May 1, 2024 - April 15, 2025 (50 weeks)
- Primary Language: English
- Deadline passed

### Target audience
- All government officials are welcome to register.
- Particularly useful for officials from ministries of finance, debt agencies, central banks, and other government agencies responsible for providing advice or implementing macroeconomic and debt policies.

### Course description
- Online course presented by the Institute for Capacity Development and the Research Department.
- Explains how to analyze the relation between public investment, growth, and public debt dynamics using two dynamic structural models:
  - Debt, Investment, and Growth (DIG) model
  - Debt, Investment, Growth and Natural Resources (DIGNAR) model
- Presents and discusses the key pieces of these models:
  - the investment-growth nexus
  - the fiscal adjustment
  - the private sector response
- Helps learners understand and assess the macroeconomic effects of public investment scaling-up plans, including on growth and debt dynamics.
- Elaborates on factors shaping these effects, including:
  - the type of fiscal financing
  - the rate of return of public capital
  - the efficiency of public investment
  - the capacity of governments to mobilize revenues

### Course applications and significance
- The DIG and DIGNAR models have gained wide acceptance for policy work over the past decade.
- Complement analyses done with the IMF and World Bank Debt Sustainability Framework.
- Over 65 country applications in the context of Fund-supported programs and surveillance work.
- Have informed policy analysis through qualitative and quantitative scenario analyses on topics including:
  - public investment surges
  - fiscal consolidations
  - cash transfers to poor households
  - the mix of public current and capital expenditures
  - the efficiency of public spending and tax administration
  - the collapse of commodity prices
- Course will illustrate some of these applications and explain how to interpret the output of policy scenario analyses.

### Course objectives
Upon completion, participants should be able to:
- Understand the basics of dynamic macroeconomic models for analyzing public investment scale-ups, growth, and debt dynamics.
- Understand the key elements of the DIG and the DIGNAR models.
- Understand how these models are used to analyze how the macroeconomic effects of public investment surges depend on:
  - policy responses
  - the type of financing of these surges (e.g., taxes and domestic versus external financing)
  - structural factors (e.g., the efficiency of public investment)
- Interpret the output of policy scenario analyses using the DIG and DIGNAR models, as reflected in official IMF documents such as Article IV reports.

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## References

- [Online Training](https://www.imf.org/en/capacity-development/training/icdtc/delivery-methods)
- [Core Elements of Banking Supervision (CBS)](https://www.imf.org/en/capacity-development/training/icdtc/schedule/at/2027/cbsat27-10)
- [Advanced Government Finance Statistics (GFS-A)](https://www.imf.org/en/capacity-development/training/icdtc/schedule/ce/2026/gfs-ace26-45)
- [Fiscal Sustainability (FS)](https://www.imf.org/en/capacity-development/training/icdtc/schedule/ce/2026/fsce26-38)
- [Safeguards Assessments of Central Banks (SAC)](https://www.imf.org/en/capacity-development/training/icdtc/schedule/at/2026/sacat26-30)

_Source: https://www.imf.org/en/capacity-development/training/icdtc/schedule/ol/2024/digxol24-147_