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Comparing macroeconomic returns on human and public capital: An empirical analysis of the Portuguese case (1960-2001)

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  • Pina, Alvaro Manuel
  • St. Aubyn, Miguel

Abstract

The impact of human and public capital on growth is a major issue in economic theory and in policy evaluation. Using a cointegrated VAR, we estimate a Cobb-Douglas production function for Portugal with public and human capital. Return rates are then computed with and without dynamic feedbacks. Without these, human capital yields a return comparable to private investment, and smaller than public investment. Considering dynamic feedbacks, private capital responds positively to a shock in public capital, but negatively to a shock in human capital. Consequently, the dynamic feedbacks return on human capital is much lower than on public capital.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 27 (2005)
Issue (Month): 5 (July)
Pages: 585-598

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Handle: RePEc:eee:jpolmo:v:27:y:2005:i:5:p:585-598

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Web page: http://www.elsevier.com/locate/inca/505735

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Cited by:
  1. Jalil, Abdul & Idrees, Muhammad, 2013. "Modeling the impact of education on the economic growth: Evidence from aggregated and disaggregated time series data of Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 383-388.
  2. Miguel St. Aubyn & João Pereira, 2004. "What Level of Education Matters Most for Growth? Evidence from Portugal," Working Papers Department of Economics 2004/13, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. Ester Gomes da Silva, 2010. "Capital services estimates in Portuguese industries, 1977–2003," Portuguese Economic Journal, Springer, vol. 9(1), pages 35-74, April.
  4. Bottasso, Anna & Castagnetti, Carolina & Conti, Maurizio, 2013. "And yet they Co-move! Public capital and productivity in OECD," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 713-729.
  5. Alfredo Marvão Pereira & Jorge M. Andraz, 2010. "On The Economic Effects Of Investment In Railroad Infrastructures In Portugal," Working Papers 96, Department of Economics, College of William and Mary, revised 03 Apr 2012.
  6. Frederick L. Joutz & Yasser Abdih, 2008. "The Impact of Public Capital, Human Capital, and Knowledgeon Aggregate Output," IMF Working Papers 08/218, International Monetary Fund.
  7. Alfredo Marvão Pereira & Jorge M. Andraz, 2013. "On the economic effects of public infrastructure investment:A survey of the international evidence," Working Papers 108, Department of Economics, College of William and Mary.
  8. Emanuela Marrocu & Raffaele Paci, 2010. "The effects of public capital on the productivity of the Italian regions," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 989-1002.

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