On the implementation delays, marginal costs and price dynamics: A theoretical note with implications for the Philippines

• Main Authors: Dacuycuy, Lawrence B., Sauler, Mariel Monica R., Lim, Dickson A.
• Format: text
• Published: Animo Repository 2019
• Subjects: Public investments—Philippines; Philippines—Economic conditions; Economics; Macroeconomics
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/5760
• Institution: De La Salle University

It has been known that longer implementation delays in public investments result in sluggish accumulation of public capital. In models in which public capital determines firm productivity, the longer the duration of implementation delays, thehigher the marginal costs which, in a New Keynesian econom...