Investing In Public Investment

Author: Zac Mills
Publisher: International Monetary Fund
ISBN: 1462346499
Size: 47.17 MB
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Investing In Public Investment from the Author: Zac Mills. This paper introduces a new index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation. Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Potential research venues are outlined.

Investing In Public Infrastructure

Author: Manoj Atolia
Publisher: International Monetary Fund
ISBN: 1475598491
Size: 36.77 MB
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Investing In Public Infrastructure from the Author: Manoj Atolia. Why do governments in developing economies invest in roads and not enough in schools? In the presence of distortionary taxation and debt aversion, the different pace at which roads and schools contribute to economic growth turns out to be central to this decision. Specifically, while costs are front-loaded for both types of investment, the growth benefits of schools accrue with a delay. To put things in perspective, with a “big push,” even assuming a large (15 percent) return differential in favor of schools, the government would still limit the fraction of the investment scale-up going to schools to about a half. Besides debt aversion, political myopia also turns out to be a crucial determinant of public investment composition. A “big push,” by accelerating growth outcomes, mitigates myopia—but at the expense of greater risks to fiscal and debt sustainability. Tied concessional financing and grants can potentially mitigate the adverse effects of both debt aversion and political myopia.

Some Misconceptions About Public Investment Efficiency And Growth

Author: Mr. Andrew Berg
Publisher: International Monetary Fund
ISBN: 1513573632
Size: 45.97 MB
Format: PDF, ePub, Mobi
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Some Misconceptions About Public Investment Efficiency And Growth from the Author: Mr. Andrew Berg. We reconsider the macroeconomic implications of public investment efficiency, defined as the ratio between the actual increment to public capital and the amount spent. We show that, in a simple and standard model, increases in public investment spending in inefficient countries do not have a lower impact on growth than in efficient countries, a result confirmed in a simple cross-country regression. This apparently counter-intuitive result, which contrasts with Pritchett (2000) and recent policy analyses, follows directly from the standard assumption that the marginal product of public capital declines with the capital/output ratio. The implication is that efficiency and scarcity of public capital are likely to be inversely related across countries. It follows that both efficiency and the rate of return need to be considered together in assessing the impact of increases in investment, and blanket recommendations against increased public investment spending in inefficient countries need to be reconsidered. Changes in efficiency, in contrast, have direct and potentially powerful impacts on growth: “investing in investing” through structural reforms that increase efficiency, for example, can have very high rates of return.

Public Investment In Resource Abundant Developing Countries

Author: Mr. Andrew Berg
Publisher: International Monetary Fund
ISBN: 1475549822
Size: 48.20 MB
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Public Investment In Resource Abundant Developing Countries from the Author: Mr. Andrew Berg. Natural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of investing natural resource revenues, making explicit the role of pervasive features in these countries including public investment inefficiency, absorptive capacity constraints, Dutch disease, and financing needs to sustain capital. Revenue exhaustibility raises medium-term issues of how to sustain capital built during a windfall, while revenue volatility raises short-term concerns about macroeconomic instability. Using the model, country applications show how combining public investment with a resource fund---a sustainable investing approach---can help address the macroeconomic problems associated with both exhaustibility and volatility. The applications also demonstrate how the model can be used to determine the appropriate magnitude of the investment scaling-up (accounting for the financing needs to sustain capital) and the adequate size of a stabilization fund (buffer).

Public Real Estate Markets And Investments

Author: H. Kent Baker
Publisher: Oxford University Press
ISBN: 0199993297
Size: 59.91 MB
Format: PDF
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Public Real Estate Markets And Investments from the Author: H. Kent Baker. Real estate is typically classified as an alternative to more traditional investments such as stocks and bonds. Real estate investing involves the purchase, ownership, management, rental, or sale of real estate for profit. Real estate investments can be both income producing and non-income producing. Although real estate can produce income like a bond and appreciate like a stock, this tangible asset has several unique characteristics as well as advantages and disadvantages relative to other investment alternatives. Benefits of including real estate in a portfolio include diversification, yield enhancement, risk reduction, tax management, and inflation hedging. Unlike traditional investments, investors in real estate have the ability to influence performance. Real estate has drawbacks in that it requires management, is costly and difficult to buy, sell, and operate, and sometimes has lower liquidity. Additionally, measuring the relative performance of real estate can be challenging. The purpose of this 14-chapter book is to provide an overview and synthesis of public real estate markets and investments in a global context. The book discusses the major types and the latest trends within public real estate markets and presents the results of research studies in a straightforward manner. It has three sections: (1) foundations of public real estate, (2) public debt markets and investments, and (3) public equity markets and investments. The book should be interest to various groups including academics, practitioners, investors, and students. Readers should gain a greater appreciation of what is needed for success when investing in public real estate markets. For more information about private real estate, read Private Real Estate Markets and Investments.

Investing In Public Health A Life Cycle Approach

Author: Jack Meyer
Publisher: Xlibris Corporation
ISBN: 1493178962
Size: 75.70 MB
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Investing In Public Health A Life Cycle Approach from the Author: Jack Meyer. Better health at lower cost. This book proposes sound investments to achieve these twin goals. Rooted in a life-cycle approach, key investments start with timely prenatal care, immunizations, better educational attainment, a healthier and active work force, and healthy aging. Dr. Meyer distills the forces driving people into the health care system -- poverty, tobacco use, obesity, and pollution and presents policy prescriptions aimed at core drivers of poor health and high costs. This book presents the concept of a “positive life spiral,” in which carefully targeted investments result in better health outcomes, health care savings, and more people working productively. This lowers public assistance costs and broadens the tax base. Some of the savings are plowed back into more investments, continuing the upward spiral. The author presents a solid strategy to finance the new investments with an in-depth plan to reduce the huge amount of wasteful spending inside our health care system. He offers new approaches to health care delivery and financing, along with modern policies to assess the value of medical technology. Savings are placed in a new and secure trust fund that will redirect spending toward high-value investments in public health, education, and work force development.

Resource Windfalls Optimal Public Investment And Redistribution

Author: Mr. Alan H. Gelb
Publisher: Andrews McMeel Publishing
ISBN: 1475521529
Size: 73.60 MB
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Resource Windfalls Optimal Public Investment And Redistribution from the Author: Mr. Alan H. Gelb. This paper studies the optimal public investment decisions in countries experiencing a resource windfall. To do so, we use an augmented version of the Permanent Income framework with public investment faced with adjustment costs capturing the associated administrative capacity as well as government direct transfers. A key assumption is that those adjustment costs rise with the size of the resource windfall. The main results from the analytical model are threefold. First, a larger resource windfall commands a lower level of public capital but a higher level of redistribution through transfers. Second, weaker administrative capacity lowers the increase in optimal public capital following a resource windfall. Third, higher total factor productivity in the non-resource sector reduces the degree of des-investment in public capital commanded by weaker administrative capacity. We further extend our basic model to allow for "investing in investing" - that is public investment in administrative capacity - by endogenizing the adjustment cost in public investment. Results from the numerical simulations suggest, among other things, that a higher initial stock of public administrative "know how" leads to a higher level of optimal public investment following a resource windfall. Implications for policy are discussed.

The Entrepreneurial State

Author: Mariana Mazzucato
Publisher: Anthem Press
ISBN: 1783085215
Size: 75.84 MB
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The Entrepreneurial State from the Author: Mariana Mazzucato. This bestseller from leading economist Mariana Mazzucato � named by the �New Republic� as one of the �most important innovation thinkers� today � is stirring up much-needed debates worldwide about the role of the State in innovation. Debunking the myth of a laggard State at odds with a dynamic private sector, Mazzucato reveals in case study after case study that in fact the opposite situation is true, with the private sector only finding the courage to invest after the entrepreneurial State has made the high-risk investments. Case studies include examples of the State�s role in the �green revolution�, in biotech and pharmaceuticals, as well as several detailed examples from Silicon Valley. In an intensely researched chapter, she reveals that every technology that makes the iPhone so �smart� was government funded: the Internet, GPS, its touch-screen display and the voice-activated Siri. Mazzucato also controversially argues that in the history of modern capitalism the State has not only fixed market failures, but has also shaped and created markets, paving the way for new technologies and sectors that the private sector only ventures into once the initial risk has been assumed. And yet by not admitting the State�s role we are socializing only the risks, while privatizing the rewards in fewer hands. This, she argues, hurts both future innovation and equity in modern-day capitalism. Named one of the �2013 Books of the Year� by the �Financial Times� and recommended by �Forbes� in its 2013 �creative leaders� list, this book is a must-read for those interested in a refreshing and long-awaited take on the public vs. private sector debate.

Haiti

Author: International Monetary Fund. Western Hemisphere Dept.
Publisher: International Monetary Fund
ISBN: 1484310896
Size: 11.89 MB
Format: PDF, Kindle
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Haiti from the Author: International Monetary Fund. Western Hemisphere Dept.. Fiscal policy in Haiti should be oriented toward more developmental objectives. Steps have been taken in sustaining inclusiveness; however, the current taxation and expenditure frameworks do not completely fulfill the necessary requirements for these objectives. Inefficient public investment and lack of transparency have resulted in lower growth, lower fiscal revenue, and higher costs as well as macroeconomic imbalances, limited competitiveness, and slow economic integration. The country should take advantage of the available financial assistance and step up efforts to improve public investment quality.