Updating Investment Forecasts with Macro Consistency

This technical note presents a model to evaluate the costs and benefits of plans to scale up public investment. It creates a theoretical framework that considers the positive effects of investment on growth and, in turn, the impact it can have on government fiscal accounts, particularly debt service. This note is accompanied by a template that implements the proposed methodology, which the author hopes will be useful for the work of country economists at the Inter-American Development Bank.