Structural Impulse Responses to Productivity and Public Investment Shocks (Quarterly)
Citation: IMF Working Papers 2015, 264; 10.5089/9781513541655.001.A001Notes: Figures are impulse responses to a one standard deviation shock to productivity or public investment, together with the 5th and 95th percentile bootstrapped error bands with 2000 replications. The impulse responses correspond to models with quarterly data on public and private investment projects constructed from CAPEX-CMIE database. Columns 1, 2, and 3 show impulse responses of models 4, 5, and 6, respectively. In model 4, shelved or abandoned projects (for both public and private sectors) are not included in the construction of the investment series once they are shelved or abandoned. Model 5 considers the other extreme where shelved or abandoned projects are not excluded from the investment series altogether from the date of announcement. Model 6 takes public investment as constructed in Model 4 and private investment as in Model 5.