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Yoshito Funashima
 
''The effects of public investment smoothing as a stimulus measure on construction industry in Japan''
( 2012, Vol. 32 No.3 )
 
 
Using Japanese macroeconomic data over 1980:Q1-2010:Q1, we estimate their time-varying seasonal components and investigate the impact of public investment smoothing on the construction industry. It is shown that the seasonal fluctuations of public investment had faded away after the collapse of the bubble economy in the early 1990s, and they are positively correlated to the seasonal fluctuations of production in the construction industry. Moreover, it is suggested that the seasonal fluctuations of public investment affect the seasonal patterns of production in the construction industry through the adjustment of the cash earnings and employees. These findings imply that public investment smoothing can be effective for decreasing the implementation lag of fiscal policy and thereby for fine-tuning.
 
 
Keywords: public investment smoothing, implementation lag
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General
 
Manuscript Received : Jun 26 2012 Manuscript Accepted : Jul 19 2012

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