{
  "title": "The Welfare Multiplier of Public Infrastructure Investment",
  "publication": "IMF Working Papers, February 29, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/the-welfare-multiplier-of-public-infrastructure-investment-43752",
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  "summary": "We analyze the welfare multipliers of public spending (the consumption equivalent change in welfare for one dollar change in public spending) in a DSGE model. The welfare multipliers of public infrastructure investment are positive if infrastructure is sufficiently effective.",
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    {
      "heading": "Summary and approach",
      "content": "- Research question: Welfare multipliers of public spending (the consumption equivalent change in welfare for one dollar change in public spending).\n- Model: DSGE model."
    },
    {
      "heading": "Key findings",
      "content": "- The welfare multipliers of public infrastructure investment are positive if infrastructure is sufficiently effective.\n- When the medium-term output multipliers are consistent with the empirical estimates (1-1.4), the welfare multiplier is 0.8.\n- Interpretation: A dollar spent by the government for investment raises domestic welfare by equivalent of 0.8 dollars of private consumption.\n- Policy implication: The welfare gains of public infrastructure investment, if chosen wisely, may be substantial."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Consumption, Expenditure, Infrastructure, National accounts, Public investment and public-private partnerships (PPP), Public investment spending\n- Keywords: Consumption, Global, Infrastructure, infrastructure investment, investment shock, net present value, output elasticity, output multiplier, Public Infrastructure, Public Investment, Public investment and public-private partnerships (PPP), Public investment spending, public spending, Welfare, welfare multiplier, WP\n\n---\n\n Content in this bundle\n\n- wp1640\n  - wp1640 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1640 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-welfare-multiplier-of-public-infrastructure-investment-43752"
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    "Authors: Giovanni Ganelli, Juha Tervala",
    "Published: February 29, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475516678.001",
    "Research question: Welfare multipliers of public spending (the consumption equivalent change in welfare for one dollar change in public spending).",
    "Model: DSGE model.",
    "The welfare multipliers of public infrastructure investment are positive if infrastructure is sufficiently effective.",
    "When the medium-term output multipliers are consistent with the empirical estimates (1-1.4), the welfare multiplier is 0.8.",
    "Interpretation: A dollar spent by the government for investment raises domestic welfare by equivalent of 0.8 dollars of private consumption.",
    "Policy implication: The welfare gains of public infrastructure investment, if chosen wisely, may be substantial.",
    "Subject: Consumption, Expenditure, Infrastructure, National accounts, Public investment and public-private partnerships (PPP), Public investment spending",
    "Keywords: Consumption, Global, Infrastructure, infrastructure investment, investment shock, net present value, output elasticity, output multiplier, Public Infrastructure, Public Investment, Public investment and public-private partnerships (PPP), Public investment spending, public spending, Welfare, welfare multiplier, WP",
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