2002•Unpublished venueRequires access

Structural Cointegration Analysis of Private and Public Investment

Rosemary Rossiter

Abstract

A structural cointegration approach is used to investigate the relationship between public and private investment, based on dataseries which include software in the definitions of in-vestment. Empirical evidence for equipment suggests crowding out. However structures shows crowding in, supporting the infrastructure hypothesis. Key words: structural cointegration approach; public investment JEL classification: C50; E22; E69 1.

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Key concepts: Cointegration, Crowding out, Economics, Investment (military), Public investment, Empirical evidence, Econometrics, Macroeconomics