International Journal of Business and Economics Volume 1, No. 1 April​, 2002

Structural Cointegration Analysis of Private and Public Investment

Rosemary Rossiter

Department of Economics, Ohio University, U.S.A.

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 investment. Empirical evidence for equipment suggests crowding out. However structures shows crowding in, supporting the infrastructure hypothesis.

Keywords：structural cointegration approach, public investment.

JEL Classifications：C50, E22, E69.

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