Download or read book On the Substitution of Private and Public Capital in Production written by Zidong An and published by International Monetary Fund. This book was released on 2019-11-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most macroeconomic models assume that aggregate output is generated by a specification for the production function with total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect substitutes. In this paper we test this assumption by estimating a nested-CES production function whereas the two types of capital are considered separately along with labor as inputs. The estimation is based on our newly developed dataset on public and private capital stocks for 151 countries over a period of 1960-2014 consistent with Penn World Table version 9. We find evidence against perfect substitutability between public and private capital, especially for emerging and LIDCs, with the point estimate of the elasticity of substitution estimated closely around 3.

Download or read book Should the Private Sector Provide Public Capital written by Santanu Chatterjee and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The choice between private and government provision of a productive public good like infrastructure (public capital) is examined in the context of an endogenously growing open economy. The accumulation of public capital need not require government provision, in contrast to the standard assumption in the literature. Even with an efficient government, the relative costs and benefits of government and private provision depend crucially on the economy's underlying structural conditions and borrowing constraints in international capital markets. Countries with limited substitution possibilities and large production externalities may benefit from governments encouraging private provision of public capital through targeted investment subsidies. On the other hand, countries with flexible substitution possibilities and relatively smaller externalities may benefit either from governments directly providing public capital, or from regulation of private providers. The transitional dynamics are also shown to depend on the underlying elasticity of substitution and the size of the production externality.

Download or read book The Dynamic Macroeconomic Effects of Public Capital written by Christophe Kamps and published by Springer Science & Business Media. This book was released on 2004-12-22 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the dynamic macroeconomic effects of public capital in industrialized countries. The issue of whether public capital is productive has received a great deal of recent attention. Yet, existing empirical analyses have been limited to a small set of countries. This book presents a new database that provides internationally comparable capital stock estimates for 22 OECD countries for the 1960-2001 period. Building on this database, the book estimates the dynamic effects of public capital using a variety of econometric methods. The results suggest that public capital is productive in OECD countries on average. The theoretical analysis based on a dynamic general equilibrium model shows that the effects of public capital depend crucially on the way the government chooses to finance additional spending.

Download or read book Policy Distortions Size of Government and Growth written by William Russell Easterly and published by World Bank Publications. This book was released on 1989 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Public Capital Inequality and Politics written by Christopher Arthur Clarke and published by . This book was released on 2020 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation addresses the effect of public capital stock on the economy. Chapter One replicates the results of the landmark paper by David Aschauer on the impact of public capital on output for the US for 1949 - 1985. He estimated the elasticity of output with respect to public capital of 0.39. We obtained data from his stated sources and used his estimation techniques. We successfully replicate his main results. We also extend his data to the period 1949 - 2015, use several different sources for the input data, use DOLS and VECM estimation to account for various econometric issues, and undertake Granger causality tests. We are again able to generate results that are very close to Aschauer's.Chapter Two studies the empirical relationship between public capital investments and the complementarity of skilled labor, unskilled labor, and private capital used in the production of private output. Investment in public capital has declined in the US relative to the size of the economy since the early 1970's. If public investment is more complementary to skilled labor, then the slowdown in spending may cause a decline in the skilled wage premium. Using aggregate US time series from 1964-2014, we employee a Monte Carlo Markov Chain Metropolis-Hastings algorithm with Gibbs Sampling to estimate the elasticities of substitution of public capital. We find that public capital complements skilled labor more than unskilled labor. Had public investment maintained the post-war and pre-1970's growth rate, the college wage premium would be 14% higher than it was in 2014.Chapter Three asks whether politicians allocate public capital to reward political loyalty or to persuade ideologically hesitant voters? I extend the theoretical model of Dixit and Londregan (1996) to include public capital. It predicts greater public capital allocation in political minority districts when the voting distance is small relative to the majority jurisdiction. When the voting gap increases, the relative allocation to minority-leaning districts decreases. Using unique data of census-level infrastructure and presidential elections, the empirical tests find the opposite result. The findings are robust at the county-level, in rural tracts, and in "safe" states.

Download or read book Policy Distortions Size of Government and Growth written by William Easterly and published by . This book was released on 1989 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dialogue that advocates of liberalization have with policymakers would improve if more were made of the structural factors that influence the effect of reducing distortions on growth.

Download or read book Economic Policy Technology and Growth written by and published by . This book was released on 1995 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Tyranny of Concepts CUDIE Cumulated Depreciated Investment Effort is Not Captial written by Lant Pritchett and published by World Bank Publications. This book was released on 1999 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: May 2000 - Using the word capital to represent two different concepts is not such a problem when government is responsible for only a small fraction of national investment and is reasonably effective (as in the United States). But when government is a major investor and is ineffective, the gap between capital and cumulative, depreciated investment effort (CUDIE) may be enormous. A public sector steel mill may absorb billions as an investment, but if it cannot produce steel it has zero value as capital. The cost of public investment is not the value of public capital. Unlike for private investors, there is no remotely plausible behavioral model of the government as investor that suggests that every dollar the public sector spends as investment creates capital in an economic sense. This seemingly obvious point has so far been uniformly ignored in the voluminous empirical literature on economic growth, which uses, at best, cumulated, depreciated investment effort (CUDIE) to estimate capital stocks. But in developing countries especially, the difference between investment cumulated at cost and capital value is of primary empirical importance: government investment is half or more of total investment. And perhaps as much as half or more of government investment spending has not created equivalent capital. This suggests that nearly everything empirical written in three broad areas is misguided. First, none of the estimates of the impact of public spending identify the productivity of public capital. Even where public capital could be very productive, regressions and evaluations may suggest that public investment spending has little impact. Second, everything currently said about total factor productivity in developing countries is deeply suspect, as there is no way empirically to distinguish between low output (or growth) attributable to investments that created no factors and low output (or growth) attributable to low (or slow growth in) productivity in using accumulated factors. Third, multivariate growth regressions to date have not, in fact, controlled for the growth of capital stock, so spurious interpretations have emerged. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to understand the importance of public sector actions for economic growth.

Download or read book Handbook of Economic Development written by Kuo-Tsai Liou and published by CRC Press. This book was released on 1998-06-25 with total page 768 pages. Available in PDF, EPUB and Kindle. Book excerpt: Featuring over 1900 references, drawings, and tables and drawing on disciplines as diverse as political economics, public management, and urban affairs, this versatile text offers comprehensive information on major policy and managerial issues important to local and national economic development. Pulling together the work of over 40 researchers, the book examines the role of government in economic advances and reform, provides a complete, up-to-date survey of the literature on local and national economic development, details local and regional economic progress in the US, adopts an innovative interdisciplinary approach to the study of economic expansion, and more.

Download or read book Our Nation s Transportation and Core Infrastructure written by United States. Congress. House. Committee on Public Works and Transportation and published by . This book was released on 1991 with total page 980 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Efficiency Adjusted Public Capital and Growth written by Mr.Sanjeev Gupta and published by International Monetary Fund. This book was released on 2011-09-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper constructs an efficiency-adjusted public capital stock series and re-examines the public capital and growth relationship for 52 developing countries. The results show that public capital is a significant contributor to economic growth. Although the estimated coefficient for the income share of public capital is larger in middle- than in low-income countries, the opposite is true for the marginal product of public capital. The quality of public investment, as measured by variables capturing the adequacy of project selection and implementation, are statistically significant in explaining variations in economic growth, a result mainly driven by low-income countries.

Download or read book Economic Growth and Macroeconomic Dynamics written by Steve Dowrick and published by Cambridge University Press. This book was released on 2004-05-31 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of the endogenous growth model rekindled interest in growth theory. In contrast to the neo-classical model, long-run endogenous growth emerged as an equilibrium outcome, reflecting the behaviour of optimizing agents in the economy. This book brings together a number of contributions in growth theory and macroeconomic dynamics, reflecting these developments and the ongoing debate over the relative merits of neo-classical and endogenous growth models. It focuses on the emergence of three important aspects: First, it develops growth models that extend the underlying theory in different directions. Second, it addresses one of the concerns of the literature on growth and dynamics: the statistical properties of underlying data and the effort to ensure that growth models are consistent with empirical evidence. Third, it discusses the increasingly international focus of macrodynamics and growth theory, an inevitable consequence of the integration of the world economy.

Download or read book National Infrastructure Issues written by United States. Congress. Senate. Committee on Environment and Public Works. Subcommittee on Water Resources, Transportation, and Infrastructure and published by . This book was released on 1988 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Macroeconomics of Public Sector Deficits written by Roumeen Islam and published by World Bank Publications. This book was released on 1991 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Developments in Public Infrastructure Procurement written by Darrin Grimsey and published by Edward Elgar Publishing. This book was released on 2017-11-24 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is widespread acceptance of the importance of infrastructure, but less agreement about how it should be funded and procured. While most public infrastructure is still provided in-house or by traditional procurement methods – with well-researched strengths and weaknesses – the development of service concession arrangements has seen a greater emphasis on lifecycle costing, risk assessment and asset design as featured in a variety of public private partnership (PPP) delivery models. This book examines the various procurement approaches, and provides a framework for comparing their advantages and disadvantages. Drawing on international experience, it considers some of the best and worst examples of PPPs, and infrastructure projects generally, along with the lessons for improving infrastructure procurement processes.

Download or read book Economic Growth and Macroeconomic Dynamics written by Steve Dowrick and published by . This book was released on 2006-06-11 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of the endogenous growth model rekindled interest in growth theory. In contrast to the neo-classical model, long-run endogenous growth emerged as an equilibrium outcome, reflecting the behaviour of optimizing agents in the economy. This book brings together a number of contributions in growth theory and macroeconomic dynamics, reflecting these developments and the ongoing debate over the relative merits of neo-classical and endogenous growth models. It focuses on the emergence of three important aspects: First, it develops growth models that extend the underlying theory in different directions. Second, it addresses one of the concerns of the literature on growth and dynamics: the statistical properties of underlying data and the effort to ensure that growth models are consistent with empirical evidence. Third, it discusses the increasingly international focus of macrodynamics and growth theory, an inevitable consequence of the integration of the world economy.

Download or read book Infrastructure Productivity Evaluation written by Wouter Jonkhoff and published by Springer Science & Business Media. This book was released on 2011-01-11 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: Infrastructure construction and use is at the heart o the current political debate. Not only are European member state governments investing large amounts of money to alleviate the harmful effects of the economic downturn due to the credit crisis, EU accession countries receive large amounts of cohesion funds for infrastructure purposes. Infrastructure is widely believed to contribute largely to economic performance, but to what extent is this the case? How does the productivity of roads, railways and ports relate to the invested money, and what determines their effectiveness? In this Brief, which focuses to a large extent on Dutch and European practice, numerous distinguished economists describe policy practice and analytical tools for infrastructure appraisal. Moreover, harmonisation of European approaches for evaluation of infrastructure are discussed. The study focuses both on scientific productivity measurement as on case studies of infrastructure policy.