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Is public expenditure really productive?: New evidence for the USA and The Netherlands

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  • Sturm, Jan Egbert
  • de Haan, Jakob

Abstract

This paper reviews empirical evidence for the United States on the impact of the public capital stock on productivity. On econometric grounds it is argued that most previous research is flawed. If the well-known model of Aschauer is estimated in first differences - which is necessary as the variables used are neither stationary nor cointegrated - the model breaks down entirely. Similar results are found for the Netherlands.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 12 (1995)
Issue (Month): 1 (January)
Pages: 60-72

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Handle: RePEc:eee:ecmode:v:12:y:1995:i:1:p:60-72

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Web page: http://www.elsevier.com/locate/inca/30411

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