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

Jorge Davalos, Jean-Marc Montaud () and Nicolas Pécastaing
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Jean-Marc Montaud: CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour

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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.

Keywords: Infrastruscture; Productivity; CGE model; Peru (search for similar items in EconPapers)
Date: 2019-07
Note: View the original document on HAL open archive server: https://univ-pau.hal.science/hal-02937833
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Citations: View citations in EconPapers (1)

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Working Paper: Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis (2019)
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