Modelling Social Infrastructure and Economic Growth

Martin S. Chin and Yuan K. Chou

Australian Economic Papers, 2004, vol. 43, issue 2, 136-157

Abstract: This paper develops a growth model with a public sector and a human capital sector to explore the impact of social infrastructure on investment in physical capital, the accumulation of skills, output, and consumption. We show that the implications of the model are consistent with the empirical observations of Hall and Jones (1999). Economies where government policies and institutions encourage production over diversion have a larger ‘stock’ of social infrastructure, conditional on population size and sophistication of diversion technologies, which raises output per worker by increasing the extent of participation in market, rather than diversive, activities. The magnitude of these effects depends on economic agents’ inherent propensity for rent‐seeking. In addition, economies with unstable governments may suffer from an under‐provision of social infrastructure and, consequently, have reduced levels of capital and output per worker.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/j.1467-8454.2004.00221.x

Related works:
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: https://EconPapers.repec.org/RePEc:bla:ausecp:v:43:y:2004:i:2:p:136-157

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().