{"id":2350,"date":"2024-09-16T15:14:56","date_gmt":"2024-09-16T18:14:56","guid":{"rendered":"https:\/\/madeusp.com.br\/?post_type=made_publication&#038;p=2350"},"modified":"2024-11-01T19:36:57","modified_gmt":"2024-11-01T22:36:57","slug":"how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil","status":"publish","type":"made_publication","link":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/","title":{"rendered":"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil"},"content":{"rendered":"<p>This paper inves\u00adti\u00adga\u00adtes the rela\u00adti\u00adonship betwe\u00aden pri\u00adva\u00adte and public invest\u00adments in Bra\u00adzil. By esti\u00adma\u00adting a line\u00adar Vec\u00adtor Auto\u00adre\u00adgres\u00adsi\u00adve Model (VAR) for 1996\u20132022, we find a crow\u00adding-in effect: an incre\u00ada\u00adse of 10% in public invest\u00adment gene\u00adra\u00adtes a 1.48% and 2.5% rise in pri\u00adva\u00adte invest\u00adment after one and four quar\u00adters, res\u00adpec\u00adti\u00advely. To inves\u00adti\u00adga\u00adte the role of inco\u00adme dis\u00adtri\u00adbu\u00adti\u00adon in this result, we employ a Threshold Vec\u00adtor Auto\u00adre\u00adgres\u00adsi\u00adve Model (TVAR). We find the crow\u00adding-in effect only occurs in the rela\u00adti\u00advely low-inco\u00adme ine\u00adqua\u00adlity regi\u00adme: a 10% incre\u00ada\u00adse in public invest\u00adment results in a 0.8% and 3.4% incre\u00ada\u00adse in pri\u00adva\u00adte invest\u00adment after one and four quar\u00adters, res\u00adpec\u00adti\u00advely. Con\u00adver\u00adsely, in the rela\u00adti\u00advely high-ine\u00adqua\u00adlity sce\u00adna\u00adrio, the res\u00adpon\u00adse is not sta\u00adtis\u00adti\u00adcally dif\u00adfe\u00adrent from zero. Thus, from a macro\u00ade\u00adco\u00adno\u00admic stand\u00adpoint, dimi\u00adnishing ine\u00adqua\u00adlity holds the poten\u00adti\u00adal to enhan\u00adce the res\u00adpon\u00adsi\u00adve\u00adness of pri\u00adva\u00adte invest\u00adment to public investment.<br>\nKeywords: Public invest\u00adment. Pri\u00adva\u00adte invest\u00adment. Inco\u00adme Ine\u00adqua\u00adlity. TVAR. Crow\u00adding-in effect.<br>\nJEL: C32, E22, E25,&nbsp;H54<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper inves\u00adti\u00adga\u00adtes the rela\u00adti\u00adonship betwe\u00aden pri\u00adva\u00adte and public invest\u00adments in Bra\u00adzil. By esti\u00adma\u00adting a line\u00adar Vec\u00adtor Auto\u00adre\u00adgres\u00adsi\u00adve Model (VAR) for 1996\u20132022, we find a crow\u00ad\u00adding-in effect: an incre\u00ada\u00adse of 10% in public invest\u00adment gene\u00adra\u00adtes a 1.48% and 2.5% rise in pri\u00adva\u00adte invest\u00adment after one and four quar\u00adters, res\u00adpec\u00adti\u00advely. To inves\u00adti\u00adga\u00adte the role of income&nbsp;[\u2026]<\/p>\n","protected":false},"template":"","tags":[291,136,289,288,290],"made_publication_type":[78],"class_list":["post-2350","made_publication","type-made_publication","status-publish","hentry","tag-crowding-in-effect","tag-income-inequality-en","tag-private-investment","tag-public-investment","tag-tvar","made_publication_type-working-papers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil &#8212; Made<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\\\/\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\\\/\",\"name\":\"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil &#8212; Made\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#website\"},\"datePublished\":\"2024-09-16T18:14:56+00:00\",\"dateModified\":\"2024-11-01T22:36:57+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publica\u00e7\u00f5es\",\"item\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publications\\\/articles\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/\",\"name\":\"Made\",\"description\":\"Research Center on Macroeconomics of Inequalities\",\"publisher\":{\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#organization\",\"name\":\"Made\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/fav-ico-made-01.png\",\"contentUrl\":\"https:\\\/\\\/madeusp.com.br\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/fav-ico-made-01.png\",\"width\":4500,\"height\":4500,\"caption\":\"Made\"},\"image\":{\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil &#8212; Made","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/","url":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/","name":"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil &#8212; Made","isPartOf":{"@id":"https:\/\/madeusp.com.br\/en\/#website"},"datePublished":"2024-09-16T18:14:56+00:00","dateModified":"2024-11-01T22:36:57+00:00","breadcrumb":{"@id":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/madeusp.com.br\/en\/publications\/articles\/how-does-income-distribution-affect-the-impact-of-public-investment-on-private-investment-empirical-evidence-from-brazil\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"In\u00edcio","item":"https:\/\/madeusp.com.br\/en\/"},{"@type":"ListItem","position":2,"name":"Publica\u00e7\u00f5es","item":"https:\/\/madeusp.com.br\/en\/publications\/articles\/"},{"@type":"ListItem","position":3,"name":"How does income distribution affect the impact of public investment on private investment? Empirical evidence from Brazil"}]},{"@type":"WebSite","@id":"https:\/\/madeusp.com.br\/en\/#website","url":"https:\/\/madeusp.com.br\/en\/","name":"Made","description":"Research Center on Macroeconomics of Inequalities","publisher":{"@id":"https:\/\/madeusp.com.br\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/madeusp.com.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/madeusp.com.br\/en\/#organization","name":"Made","url":"https:\/\/madeusp.com.br\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/madeusp.com.br\/en\/#\/schema\/logo\/image\/","url":"https:\/\/madeusp.com.br\/wp-content\/uploads\/2020\/10\/fav-ico-made-01.png","contentUrl":"https:\/\/madeusp.com.br\/wp-content\/uploads\/2020\/10\/fav-ico-made-01.png","width":4500,"height":4500,"caption":"Made"},"image":{"@id":"https:\/\/madeusp.com.br\/en\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/made_publication\/2350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/made_publication"}],"about":[{"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/types\/made_publication"}],"wp:attachment":[{"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/media?parent=2350"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/tags?post=2350"},{"taxonomy":"made_publication_type","embeddable":true,"href":"https:\/\/madeusp.com.br\/en\/wp-json\/wp\/v2\/made_publication_type?post=2350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}