We analyse whether private investments are impacted asymmetrically by public investments and how any asymmetry evolves over time. We conduct time series analyses for France and the US within a flexible empirical framework exploiting quarterly data over 1960Q1–2022Q4. The results are summarized as follows: France's private investments are positively impacted by public investments both in the short- and long-run; public investments have a neutral or negative effect on private investments in the US; the asymmetric effects in France become significant and persistent after 10 quarters; some evidence of asymmetry emerges for the US in the long-run.
Public and private investments: Long-run asymmetric effects in France and the US
Carvelli, Gianni
2023-01-01
Abstract
We analyse whether private investments are impacted asymmetrically by public investments and how any asymmetry evolves over time. We conduct time series analyses for France and the US within a flexible empirical framework exploiting quarterly data over 1960Q1–2022Q4. The results are summarized as follows: France's private investments are positively impacted by public investments both in the short- and long-run; public investments have a neutral or negative effect on private investments in the US; the asymmetric effects in France become significant and persistent after 10 quarters; some evidence of asymmetry emerges for the US in the long-run.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
