Is there a lack of public capital in the European Union?

Christophe Kamps (christophekamps@gmx.de)

No 3/2005, EIB Papers from European Investment Bank, Economics Department

Abstract: This paper investigates whether there is a lack of public capital in European Union countries. The analysis builds on a new database providing internationally comparable capital stock estimates for 22 OECD countries, among these 14 EU countries, for the period 1960-2001. A simple model of endogenous growth is used in order to highlight the inherently nonlinear relationship between public capital and economic growth and to derive a measure of the growth-maximising public capital stock. Against this background, the empirical analysis provides estimates of the growth-maximising level of public capital for EU countries. The empirical results suggest that there currently is no lack of public capital in most "old" EU countries.

Keywords: public capital; economic growth (search for similar items in EconPapers)
JEL-codes: E62 H54 O40 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-06-06
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Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:eibpap:2005_003

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