Public investment is a central issue in the dynamic analyses of fiscal policy and economic growth. Debt financing for public investment and its effects have recently received great attention because interest rates have been low, almost invariably remaining below economic growth rates. This paper presents examination of the effects of debt-financed public investment subject to a simple fiscal rule in an overlapping generations model with public capital. This topic includes capital budgeting and the debt–deficit criterion of the Maastricht treaty. We show herein that debt financing for public investment enhances economic growth if an economy is dynamically inefficient and if public capital has a sufficiently large productivity effect. Moreover, it reduces economic growth rates in a dynamically efficient economy. Debt and growth can have a monotonic or non-monotonic relation, depending on the steady-state interest rate, growth rate, and productivity effect of public investment. The findings indicate that debt–growth relations match with controversial empirical evidence. Furthermore, existing generations choose perfect debt finance if dynamic inefficiency exists. In contrast, a balanced budget is preferred in a dynamically efficient economy with low productivity effects of public capital. However, an economy with high productivity effects of public capital might cho ose debt financing. This paper contributes to the elucidation of currently emphasized issues of public investment.

公共投资是财政政策和经济增长动态分析的核心问题。公共投资的债务融资及其影响最近受到极大关注，因为利率一直很低，几乎总是低于经济增长率。本文介绍了在具有公共资本的世代重叠模型中，受限于简单财政规则的债务融资公共投资的影响。该主题包括资本预算和马斯特里赫特条约的债务赤字标准。我们在此表明​​，如果经济动态效率低下且公共资本具有足够大的生产率效应，则公共投资的债务融资会促进经济增长。此外，它降低了动态高效经济中的经济增长率。债务和增长可以具有单调或非单调关系，这取决于稳态利率、增长率和公共投资的生产率效应。调查结果表明，债务与增长的关系与有争议的实证证据相吻合。此外，如果存在动态低效率，现有世代会选择完美的债务融资。相比之下，在公共资本对生产率影响较低的动态高效经济体中，平衡预算更为可取。然而，公共资本对生产率影响高的经济体可能会选择债务融资。本文有助于阐明当前强调的公共投资问题。调查结果表明，债务与增长的关系与有争议的实证证据相吻合。此外，如果存在动态低效率，现有世代会选择完美的债务融资。相比之下，在公共资本对生产率影响较低的动态高效经济体中，平衡预算更为可取。然而，公共资本对生产率影响高的经济体可能会选择债务融资。本文有助于阐明当前强调的公共投资问题。调查结果表明，债务与增长的关系与有争议的实证证据相吻合。此外，如果存在动态低效率，现有世代会选择完美的债务融资。相比之下，在公共资本对生产率影响较低的动态高效经济体中，平衡预算更为可取。然而，公共资本对生产率影响高的经济体可能会选择债务融资。本文有助于阐明当前强调的公共投资问题。公共资本对生产率影响高的经济体可能会选择债务融资。本文有助于阐明当前强调的公共投资问题。公共资本对生产率影响高的经济体可能会选择债务融资。本文有助于阐明当前强调的公共投资问题。