EconPapers    
Economics at your fingertips  
 

Public Capital, Private Capital and Economic Growth

Alberto Bucci ()

Rivista Internazionale di Scienze Sociali, 2012, vol. 120, issue 2, 149-180

Abstract: A growth model is presented in which productive government expenditure takes the form of a stock. Private and public capital interact with each other in two ways. The first is related to the specification of the aggregate production function (Cobb-Douglas vs. CES). The second has to do with the rates of investment in the two types of capital, and arises from the law of motion of public capital. The share of public capital devoted to output production can be exogenous or endogenous. In this framework, we analyse how the optimal growth rate of the economy depends on the degree of complementarity/substitutability between the investments in the two kinds of capital, as well as on the elasticity of substitution between the two capital-inputs in the production of goods. Unlike Barro (1990), the relationship between optimal growth and the share of productive government expenditure in GDP is nonlinear and characterized by threshold-effects.

Keywords: Economic Growth; Complementarity/Substitutability; Public Capital; Private Capital (search for similar items in EconPapers)
JEL-codes: E60 H54 O41 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://riss.vitaepensiero.it/scheda-articolo_digit ... 002_0023-151022.html (text/html)
Yes

Related works:
Working Paper: Public capital, private capital, and economic growth (2012) Downloads
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:vep:journl:y:2012:v:120:i:2:p:149-180

Access Statistics for this article

Rivista Internazionale di Scienze Sociali is currently edited by Maurizio Baussola

More articles in Rivista Internazionale di Scienze Sociali from Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore
Bibliographic data for series maintained by Vep - Vita e Pensiero ().

 
Page updated 2025-03-22
Handle: RePEc:vep:journl:y:2012:v:120:i:2:p:149-180