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Public Capital Stock and State Productivity Growth: Further Evidence from an Error Components Model

Badi Baltagi and Nat Pinnoi

Empirical Economics, 1995, vol. 20, issue 2, 59 pages

Abstract: The contribution of different types of public infrastructure on private production is investigated using time-series of cross-section data for the 48 contiguous states over the period 1970-86. A Cobb-Douglas production function is estimated with unobserved state-specific effects. Measurement errors in public capital stock and its components are detected and rectified.

Date: 1995
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