Öffentliche Investitionen als Garant der Generationengerechtigkeit

Credit financed public investment programmes can improve generational justice if they strengthen economic growth and reduce public debt in the long run. A new study shows that public investments in infrastructure, universities, and full day schools and pre schools improve generational justice. Public investments in full day schools and pre schools have the largest impact on generational justice and improve distributional justice as well. These results suggest that economic policy should use the available fiscal space to enhance public investment.     

Eine Investitionsagenda für Deutschland

Wirtschaftsdienst - Der Koalitionsvertrag von Union und SPD enthält erste Schritte in Richtung einer Ausweitung der öffentlichen Investitionen in Bildung und Betreuung, Wohnungsbau und...     

Accounting for the Political Uncertainty Factor

We build our analysis upon previous work by Bloom et al. (Measuring the Effect of Political Uncertainty. Working Paper, Stanford University, 2012) and Baker et al. (Political Uncertainty: A New Indicator. CentrePiece 2012; 16 (3): 21–23), who estimate the dynamic effects of a shock to a newly constructed surrogate measure of political uncertainty (PU) on the US economy. Comparable to their results we demonstrate that a shock to PU has pervasive effects on the dynamic evolution of the US economy. Using an estimated structural dynamic factor model we find that more globally integrated markets exhibit significantly more pronounced responses than other measures of real economic activity. Impulse responses reveal a small but statistically significant ‘flight‐to‐safety’ effect, depressing government bond yields across the entire term structure following a shock to PU. Forecast error variance decompositions are predominantly composed of supply, demand, and PU shocks over all horizons, with PU shocks contributing less and supply shocks contributing more to forecast errors at longer horizons. Technology shocks, by contrast, are found to affect forecast accuracy closer to impact with quickly decaying contributions over extended forecast horizons. Copyright © 2015 John Wiley & Sons, Ltd.