Optimizing public investment for maximum economic welfare and growth
The article explores how investing in public infrastructure affects the economy and people's well-being. By analyzing data from the U.S. between 1990-2015, the study suggests that the government should increase infrastructure spending above the current 4% of GDP to maximize welfare in the long run. However, considering short-term effects and budget constraints, there is a trade-off: a temporary increase in spending followed by a decrease to maintain financial stability.