12 Nov
2025
Kiel-CEPR Research Seminar
Ugo Panizza: Public Investment Quality and Sovereign Risk
12:00
–
13:00
Ugo Panizza, Geneva Graduate Institute
Speaker: Ugo Panizza, Geneva Graduate Institute, CEPR
Location: online or at Kiel Institute for the World Economy, Chausseestraße 111, 10115 Berlin
Organizers: Kiel Institute for the World Economy, CEPR
Registration: Please sign up to receive the newsletter and zoom links for the seminar. If you plan to attend in person, please let us know here beforehand.
Abstract:
This paper introduces a new index measuring the quality of public investment covering 120 economies over 2000–2021. It shows that scaling up public investment reduces sovereign risk in countries with high-quality public investment but increases sovereign risk when public investment quality is low. We find that this relationship is especially pronounced in sub-investment grade countries and that the results are not driven by the possible correlation between public investment quality and overall institutional quality. We also show that scaling up public investment when its quality is high does not undermine debt sustainability.
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Paulina Kintzinger
Paulina.Kintzinger@ifw-kiel.de
Timothy Meyer
Timothy.Meyer@ifw-kiel.de
