Do states optimize? Public capital and economic growth

David Aschauer ()

The Annals of Regional Science, 2000, vol. 34, issue 3, pages 343-363

Abstract: This paper develops a non-linear theoretical relationship between public capital and economic growth in order to obtain estimates of the growth-maximizing ratio of public capital to private capital. The model is empirically implemented using data on the 48 contiguous U.S. states over the period 1970 to 1990. The empirical results provide evidence that (i) the relationship between public capital and economic growth is non-linear, (ii) the growth-maximizing public capital stock is approximately 60% to 80% as large as the private (tangible) capital stock, and (iii) permanent changes in public capital are associated with permanent changes in economic growth.

Date: 2000-09-01
Note: Received: October 1998 / Accepted: June 1999
View citations in EconPapers

Downloads: (external link)
http://link.springer.de/link/service/journals/00168/papers/0034003/00340343.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
Working Paper: Do States Optimize? Public Capital and Economic Growth (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:spr:anresc:v:34:y:2000:i:3:p:343-363

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

Access Statistics for this article

The Annals of Regional Science is edited by B. Johansson, E. Kim and R. R. Stough

More articles in The Annals of Regional Science from Springer
Series data maintained by Christopher F Baum ().