Public Capital and Growth

Gabriele Tondl
Additional contact information
Gabriele Tondl: Wirtschaftsuniversität

Chapter 6 in Convergence After Divergence? Regional Growth in Europe, 2001, pp 210-230 from Springer

Abstract: Abstract In recent years, several growth economists, like (1990), (1997), Aschauer 1989, 1997, etc., have focused on the role of public capital in production and growth. Public capital can be considered as a special type of capital and thus as a production input, but it enters also in a very particular relationship with private capital. First, public capital is a complementary input to private capital and enhances its productivity. As a consequence, public capital can enable endogenous growth. On the other side, since public capital requires financing through taxes, which has a contractory effect on growth, policies to promote public investment to stimulate a region’s growth have natural limits. Moreover, the need of financing means that rich regions with a large tax basis automatically can afford a high public investment. This makes it hard for poor regions to catch up when rich regions steadily upgrade their public capital stock.

Date: 2001
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-7091-6219-4_6

Ordering information: This item can be ordered from
http://www.springer.com/9783709162194

DOI: 10.1007/978-3-7091-6219-4_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().