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Accounting for Cross-Country Income Differences with Public Capital

German Cubas ()

No 2010014, Documentos de trabajo from Banco Central del Uruguay

Abstract: This paper offers new evidence on the sources of cross-country income differences by investigating the role public capital in development accounting. I explicitly measure private and public capital stocks, and I find large differences in both types of capital across countries. Moreover, differences in private capital are larger than the ones I find for total capital for the richest and poorest countries. The methodology I use implies a share of public capital in output of at most 10%. My findings indicate that differences in capital stocks can not account for a substantial part of the observed dispersion in income across countries.

Keywords: Income differences; Public capital; Development Accounting; Diferencias de Ingreso; Capital Publico; Desarrollo (search for similar items in EconPapers)
JEL-codes: O11 O41 H41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010
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https://www.bcu.gub.uy/Estadisticas-e-Indicadores/ ... 0Trabajo/14.2010.pdf First version, 2010 (application/pdf)

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