Jorge P. Puig
FCE-Universidad Nacional de La Plata
Calle 6 #777
La Plata, 1900
NBER Working Papers and Publications
|November 2019||Is the Public Investment Multiplier Higher in Developing Countries? An Empirical Investigation|
with Alejandro Izquierdo, Ruy E. Lama, Juan Pablo Medina, Daniel Riera-Crichton, Carlos A. Vegh, Guillermo Vuletin: w26478
Over the last decade, empirical studies analyzing macroeconomic conditions that may affect the size of government spending multipliers have flourished. Yet, in spite of their obvious public policy importance, little is known about public investment multipliers. In particular, the clear theoretical implication that public investment multipliers should be higher (lower) the lower (higher) is the initial stock of public capital has not, to the best of our knowledge, been tested. This paper tackles this empirical challenge and finds robust evidence in favor of the above hypothesis: countries with a low initial stock of public capital (as a proportion of GDP) have significantly higher public investment multipliers than countries with a high initial stock of public capital. This key finding seem...
|August 2019||Fooled by the Cycle: Permanent versus Cyclical Improvements in Social Indicators|
with José Andrée Camarena, Luciana Galeano, Luis Morano, Daniel Riera-Crichton, Carlos Vegh, Lucila Venturi, Guillermo Vuletin: w26199
This paper studies the time-series behavior of a set of widely-used social indicators and uncovers two important stylized facts. First, not all social indicators are created equal in terms of the importance of cyclical fluctuations. While some social indicators such as the unemployment rate and monetary poverty show large cyclical fluctuations, other social measures such as the Human Development Index are, by construction, dominated by long-run trends. Second, a large fraction of the cyclical fluctuations in social indicators can be explained by the cyclical changes in income (proxied by real GDP per capita). Since cyclical income volatility is much larger in the developing world, these two critical facts raise fundamental issues regarding how permanent are improvements in social indic...