Bottlenecks in ramping up public investment.
A windfall in a developing economy with capital scarcity and investment adjustment costs facing a temporary windfall should be used to give more consumption to poorer present generations and to speed up development by ramping up public investment and paying off debt taking due account of the increas...
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| Format: | Journal article |
| Language: | English |
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Springer
2012
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| _version_ | 1797105331738771456 |
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| author | van der Ploeg, F |
| author_facet | van der Ploeg, F |
| author_sort | van der Ploeg, F |
| collection | OXFORD |
| description | A windfall in a developing economy with capital scarcity and investment adjustment costs facing a temporary windfall should be used to give more consumption to poorer present generations and to speed up development by ramping up public investment and paying off debt taking due account of the increasing inefficiency as investment gets ramped up. The optimal strategy requires negative genuine saving; the permanent income requires zero genuine saving. The optimal real consumption increments are smaller once one allows for absorption constraints resulting from Dutch disease and sluggish adjustment of 'home-grown' public capital. |
| first_indexed | 2024-03-07T06:45:59Z |
| format | Journal article |
| id | oxford-uuid:fadde46a-7610-423c-8266-875e6417fc3f |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T06:45:59Z |
| publishDate | 2012 |
| publisher | Springer |
| record_format | dspace |
| spelling | oxford-uuid:fadde46a-7610-423c-8266-875e6417fc3f2022-03-27T13:09:29ZBottlenecks in ramping up public investment.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:fadde46a-7610-423c-8266-875e6417fc3fEnglishDepartment of Economics - ePrintsSpringer2012van der Ploeg, FA windfall in a developing economy with capital scarcity and investment adjustment costs facing a temporary windfall should be used to give more consumption to poorer present generations and to speed up development by ramping up public investment and paying off debt taking due account of the increasing inefficiency as investment gets ramped up. The optimal strategy requires negative genuine saving; the permanent income requires zero genuine saving. The optimal real consumption increments are smaller once one allows for absorption constraints resulting from Dutch disease and sluggish adjustment of 'home-grown' public capital. |
| spellingShingle | van der Ploeg, F Bottlenecks in ramping up public investment. |
| title | Bottlenecks in ramping up public investment. |
| title_full | Bottlenecks in ramping up public investment. |
| title_fullStr | Bottlenecks in ramping up public investment. |
| title_full_unstemmed | Bottlenecks in ramping up public investment. |
| title_short | Bottlenecks in ramping up public investment. |
| title_sort | bottlenecks in ramping up public investment |
| work_keys_str_mv | AT vanderploegf bottlenecksinrampinguppublicinvestment |