Aggregate infrastructure capital stock and long-run growth: Evidence from Finnish data
AbstractIn this paper, Bayesian methods and the Finnish aggregate infrastructure capital series from 1860 to 2003 are used to explore how government infrastructure policy affects long-run output growth. We use Finnish data, since to the best of our knowledge the Finnish land and water construction investments series is the best available sufficiently long time series on aggregate infrastructure investments. The Finnish data provide strong and robust evidence indicating that permanent changes in government infrastructure policy have permanent effects on the growth rate of output.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 94 (2011)
Issue (Month): 2 (March)
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Aggregate infrastructure capital stock Bayesian methods Long-run output growth;
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