The Contribution of Local Public Infrastructure to Private Productivity and Its Political Economy: Evidence from a Panel of Large German Cities

Achim Kemmerling and Andreas Stephan

Public Choice, 2002, vol. 113, issue 3-4, 403-24

Abstract: This paper proposes a simultaneous-equation approach to the estimation of the contribution of infrastructure accumulation to private production. A political economy model for the allocation of public infrastructure investment grants is formulated. Our empirical findings, using a panel of large German cities for the years 1980,1986, and 1988, suggest that cities ruled by a council sharing the State ("Bundesland") government's current political affiliation were particularly successful in attracting infrastructure investment grants. With regard to the contribution of infrastructure accumulation to growth, we find that public capital is a significant factor in private production. Moreover, at least for the sample studied, we find that simultaneity between output and public capital is weak; thus, feedback effects from output to infrastructure are negligible. Copyright 2002 by Kluwer Academic Publishers

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (68)

Downloads: (external link)
http://journals.kluweronline.com/issn/0048-5829/contents link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Contribution of Local Public Infrastructure to Private Productivity and Its Political-Economy: Evidence from a Panel of Large German Cities (2001)
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:kap:pubcho:v:113:y:2002:i:3-4:p:403-24

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11127/PS2

Access Statistics for this article

Public Choice is currently edited by WIlliam F. Shughart II

More articles in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().