Is public capital really productive? A methodological reappraisal

Alexandru Minea and Christophe Hurlin

Post-Print from HAL

Abstract: We present an evaluation of the main empirical approaches used in the literature to estimate the contribution of public capital stock to growth and private factors' productivity. Based on a simple stochastic general equilibrium model, built as to reproduce the main long-run relations observed in US post-war historical data, we show that the production function approach may not be reliable to estimate this contribution. Our analysis reveals that this approach largely overestimates the public capital elasticity, given the presence of a common stochastic trend shared by all non-stationary inputs.

Keywords: Robustness and sensitivity analysis; Stochastic processes; Time series; infrastructure; Public capital elasticity; Cointegrated regressors (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Published in European Journal of Operational Research, 2013, 228, pp.122-130

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

Related works:
Journal Article: Is public capital really productive? A methodological reappraisal (2013)
Working Paper: Is Public Capital Really Productive? A Methodological Reappraisal (2012)
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:hal:journl:halshs-00804179

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().