Dynamic effects of public investment: Vector autoregressive evidence from six industrialized countries

New Estimates of Government Net Capital Stocks for 22 OECD Countries 1960-2001

“…Most recent studies use an approach based on vector autoregressive (VAR) models-for example, Mittnik and Neumann (2001), Voss (2002), and Kamps (2005)-that, unlike the earlier production function and cost function approaches, does not impose causal links among the variables under investigation. The main disadvantage of this approach is that it generally requires large data samples for conventional lag lengths.…”

Transport Infrastructure Investment and Sustainable Economic Growth in Côte d’Ivoire: A Cointegration and Causality Analysis

“…Furthermore, they find that transport infrastructure positively Granger-causes GDP whereas GDP negatively Granger-causes transport infrastructure. Mittnik and Neumann (2001) also establish that public investment has positive influence on GDP. However, there is no significant causal link running from GDP to public investment.…”

“…This view has been questioned in subsequent studies. It has been argued that while public investment may be considered as a factor input that contribute to economic growth, the way it is financed may crowd out private investment (Mittnik & Neumann, 2001). The main criticism of government intervention is that it is not as effective as market forces in allocating resources.…”

Causal Relationship between Public Investment and Economic Growth: Evidence from Bangladesh

“…Mittnik and Neumann (2001) [10] estimate a VAR with GDP, private investment, public investment and public consumption for six industrialized economies. Their results indicate that public investment tends to exert positive effects on GDP, and that there is no evidence of dominant crowding-out effects.…”