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Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis

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Abstract

This study assesses the potential economic impacts of investments dedicated to filling infrastructure gaps in Peru. By using a national database at the firm level, we start by empirically estimating the positive externalities of Peruvian infrastructure on private activities’ output. In the second step, these estimates are introduced in a dynamic Computable General Equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.
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Dates and versions

hal-02937833 , version 1 (14-09-2020)

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  • HAL Id : hal-02937833 , version 1

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Jorge Davalos, Jean-Marc Montaud, Nicolas Pecastaing. Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis. 2019. ⟨hal-02937833⟩
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