On the efficiency of public investment allocations in Greece

After long procrastination and endless negotiations, it seems now that the reform/austerity package requested by the troika will go through and that the latest loan instalment for Greece will be released. Disappointingly, the new package contains very little, if anything, on the demand side – and on public investment in particular – continuing on the motif of fiscal consolidation (spending cuts and tax hikes) and supply-side stimuli (deregulation and internal devaluation).