Abstract

BOTERO-GARCIA, Jesús  and  GARCIA-GUZMAN, José. Development, restructuring of public spending and public-private partnerships. Rev.econ.inst. [online]. 2018, vol.20, n.38, pp.185-207. ISSN 0124-5996.  https://doi.org/10.18601/01245996.v20n38.08.

This paper analyzes the welfare effects of improvements in investment in education and infrastructure with public-private participation, in a fiscal framework of a small and open economy for the Colombian economy. A DSGE model is built where families make decisions on human capital and the government finances megaprojects by placing infrastructure bonds. The results suggest greater effects in the long-term adjustment and improvements in social welfare when public spending is focused on sectors with higher levels of employment and technological and innovation improvements are introduced.

JEL: B22, E27, E60.

Keywords : infrastructure; model DSGE; public spending; human capital.

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