Infrastructure Planning and Management Vol.37 (Special Issue)
A MEASUREMENT OF CROWDING-IN AND CROWDING-OUT EFFECTS BY REGIONAL PUBLIC INVESTMENT
2020 Volume 75 Issue 6 Pages I_29-I_36
Details
2020 Volume 75 Issue 6 Pages I_29-I_36
This thesis describes a measurement of Crowding-In and Crowding-Out effects by regional public investment. There is an international criticism for the share of public investment in total government spending in Japan by OECD (2016). In order to evaluate the effects of social capital on the economy, it is necessary to measure the effect of the public investment not only from supply-side but also from demand-side. Hatano (2008) estimated the effects of public investment on private investment by using the error correction model including the stock equilibrium. This study applies the model to recent macro Japan data and its regional data. There are two purposes in this study. First, it estimates the effects of public investment on private investment in macro-level. Second, it estimates the effects in regional level and compares the tendencies. At the macro level, it is founded that there is Crowding-In effect. At the regional level, the Crowding-In effect is more dominant in rural areas than urban areas in the long run.
